Published on 3/1/2018 in the Prospect News Investment Grade Daily.
New Issue: Occidental Petroleum sells $1 billion 4.2% 30-year senior notes at 110 bps spread
By Cristal Cody
Tupelo, Miss., March 1 – Occidental Petroleum Corp. priced $1 billion of 4.2% 30-year senior notes (A3/A/A) on Wednesday at 99.272 to yield 4.243%, or Treasuries plus 110 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes tightened from initial price talk in the Treasuries plus 120 bps area.
Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and BofA Merrill Lynch were the bookrunners.
Proceeds will be used to refinance the company’s $500 million of 1.5% senior notes that matured on Feb. 15, 2018 and for general corporate purposes.
Occidental is a Los Angeles-based oil and gas, chemical and midstream company.
| Issuer: | Occidental Petroleum Corp.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Maturity: | March 15, 2048
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and BofA Merrill Lynch
|
| Senior co-managers: | BBVA Securities Inc., BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Academy Securities, Inc., BNP Paribas Securities Corp., Loop Capital Markets LLC and Williams Capital Group, LP
|
| Coupon: | 4.2%
|
| Price: | 99.272
|
| Yield: | 4.243%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 20 bps before Sept. 15, 2047; thereafter at par
|
| Trade date: | Feb. 28
|
| Settlement date: | March 2
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 120 bps area
|
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