Published on 8/15/2011 in the Prospect News Investment Grade Daily.
New Issue: Occidental Petroleum sells $2.15 billion of notes due 2017, 2022
By Andrea Heisinger
New York, Aug. 15 - Occidental Petroleum Corp. sold $2.15 billion of senior notes (A2/A/A) in two parts on Monday, a source close to the trade said.
The $1.25 billion of 1.75% notes due 2017 were sold at 99.046 to yield 1.934% with a spread of 95basis points over Treasuries. The notes priced at the low end of guidance in the 100 bps area, plus or minus 5 bps.
The notes have a make-whole call at Treasuries plus 15 bps.
A $900 million tranche of 3.125% notes due 2022 was priced at 98.093 to yield 3.342% with a spread of Treasuries plus 105 bps. The tranche was sold at the tight end of talk in the 110 bps area, plus or minus 5 bps.
The notes have a make-whole call at Treasuries plus 20 bps until Nov. 15, 2021 and after that date at par.
Active bookrunners were Barclays Capital Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC. Passive bookrunners were Bank of America Merrill Lynch and Wells Fargo Securities LLC.
Co-managers were Banca IMI SpA, Banco Bilbao Vizcaya Argentaria, SA, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., RBS Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank and UBS Securities LLC.
Proceeds will be used for general corporate purposes, including working capital, acquisitions, debt retirement, stock repurchase and other business opportunities.
The oil and gas, chemical and midstream company is based in Los Angeles.
| Issuer: | Occidental Petroleum Corp.
|
| Issue: | Senior notes
|
| Amount: | $2.15 billion
|
| Bookrunners: | Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC (active), Bank of America Merrill Lynch, Wells Fargo Securities LLC (passive)
|
| Co-managers: | Banca IMI SpA, Banco Bilbao Vizcaya Argentaria, SA, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., RBS Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank, UBS Securities LLC
|
| Trade date: | Aug. 15
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Notes due 2017
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 15, 2017
|
| Coupon: | 1.75%
|
| Price: | 99.046
|
| Yield: | 1.934%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 100 bps area
|
|
|
| Notes due 2022
|
| Amount: | $900 million
|
| Maturity: | Feb. 15, 2022
|
| Coupon: | 3.125%
|
| Price: | 98.093
|
| Yield: | 3.342%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Nov. 15, 2021, then at par
|
| Price talk: | 110 bps area
|
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