Occidental gives early results, increases tender offers to $3.1 billion

By Rebecca Melvin

Concord, N.H., July 14 – Occidental Petroleum Corp. announced early results of its June 29 cash offers and consent solicitations for eight series of notes and increased the maximum purchase price of notes it will accept to $3,104,329,102.50 from $2.5 billion, according to a company press release.

It is also increasing the maximum principal amount to be purchased of the 2026 notes to $333,346,000 from $300,000,000.

Results for the notes included in the offer, as of 5 p.m. ET on July 13, listed in order of acceptance priority level, are:

• $277,616,000 tendered and accepted out of $629,120,000 outstanding of 2.7% senior notes due 2022 (Cusip: 674599CP8) at $1,020.00 per $1,000 of notes;

• $484,413,000 tendered and accepted out of $926,608,000 outstanding of 2.7% senior notes due 2023 (Cusip: 674599CE3) at $1,022.50 per $1,000 of notes;

• $81,254,000 tendered and accepted out of $233,062,000 outstanding of 3.45% senior notes due 2024 (Cusip: 674599DA0) at $1,020 per $1,000 of notes;

• $1,619,712,000 tendered and accepted out of $3 billion outstanding of 2.9% senior notes due 2024 (Cusip: 674599CW3) at $1,030 per $1,000 of notes;

• $228,608,000 tendered and accepted out of $750 million outstanding of 3.5% senior notes due 2025 (Cusip: 674599CG8) at $1,030 per $1,000 of notes;

• $223,581,000 tendered and accepted out of $1.15 billion outstanding of 3.4% senior notes due 2026 (Cusip: 674599CH6) at $1,022 per $1,000 of notes; and,

• $109,765,000 tendered and accepted out of $1 billion outstanding of 3.2% senior notes due 2026 (Cusip: 674599CR4) at $1,007 per $1,000 of notes.

Early settlement for notes validly tendered and not withdrawn prior to the early tender time will be July 15.

Accordingly, Occidental has accepted for purchase the 2026 notes, and all notes with a higher acceptance priority level for purposes of acceptance for purchase and proration, and has not accepted for purchase any of the floating rate 2022 Notes. Originally, $1,052,091,000 outstanding of the floating-rate notes due 2022 (Cusip: 674599CQ6) were included in the tender offer.

In each case, the total consideration includes an early tender premium of $50 per $1,000 of notes tendered that will be paid to holders who tender notes prior to the early deadline.

As previously reported, Occidental is also soliciting consents from the holders of five series of notes for proposed amendments that would, among other things, eliminate certain restrictive covenants contained in the indentures governing the subject notes. The notes are the 2.7% 2023 notes, 3.45% 2024 notes, 2.9% 2024 notes, 3½% 2025 notes and the floaters due 2022.

Adoption of the proposed amendments with respect to each such series of notes requires the requisite consents for that series.

The offers are conditioned upon the satisfaction or waiver of conditions set forth in the offer to purchase.

The offers will expire at 11:59 p.m. ET on July 27.

Barclays Capital Inc. (800 438-3242, 212 528-7581), BofA Securities, Inc. (980 388-3646, debt_advisory@bofa.com), MUFG Securities Americas Inc. (877 744-4532, 212 405-7481), RBC Capital Markets, LLC (877 381-2099, 212 618-7843) and Wells Fargo Securities, LLC (866 309-6316, 704 410-4756) are the lead dealer managers and lead solicitation agents.

Global Bondholder Services Corp. (212 430-3774, 866 807-2200; contact@gbsc-usa.com) is the tender agent and information agent.

Occidental is a Houston oil and gas, chemical and midstream company.

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