By Andrea Heisinger
New York, June 9 - Anadarko Petroleum Corp. sold $900 million of senior notes (Baa3/BBB-) in three tranches Tuesday, increased from two tranches totaling $750 million, an informed source said.
The $275 million of 5.75% five-year notes came to market at a spread of 295 basis points over Treasuries. That was in line with talk of 295 bps, a market source said. The tranche priced at 99.733 to yield 5.812%.
A $300 million tranche of 6.95% 10-year notes priced with a spread of 325 bps. Again that was in line with talk, in this case of 325 bps. These notes came at 98.881 to yield 7.108%.
The third tranche was $325 million of 7.95% 30-year notes sold at a spread of 335 bps. Once more pricing was in line with talk, of 335 bps for this portion of the deal. The notes priced at 99.659 to yield 7.98%.
All three tranches have a make-whole redemption at Treasuries plus 50 bps.
Active bookrunners were Citigroup Global Markets and Morgan Stanley. Passive books were Banc of America Securities LLC and RBS Securities.
Proceeds will be used to fund a portion of the redemption of the remaining $913 million floating-rate notes due Sept. 15, with any remainder for general corporate purposes, including future debt retirement.
The oil and gas exploration and production company is based in The Woodlands, Texas.
| Issuer: | Anadarko Petroleum Corp.
|
| Issue: | Senior notes
|
| Amount: | $900 million, increased from two tranches totaling $750 million
|
| Bookrunners: | Citigroup Global Markets, Morgan Stanley (active), Banc of America Securities LLC, RBS Securities (passive)
|
| Trade date: | June 9
|
| Settlement date: | June 12
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch:
|
|
|
| Five-year notes
|
| Amount: | $275 million
|
| Maturity: | June 15, 2014
|
| Coupon: | 5.75%
|
| Price: | 99.733
|
| Yield: | 5.812%
|
| Spread: | Treasuries plus 295 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 295 bps
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | June 15, 2019
|
| Coupon: | 6.95%
|
| Price: | 98.881
|
| Yield: | 7.108%
|
| Spread: | Treasuries plus 325 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 325 bps
|
|
|
| Thirty-year notes
|
| Amount: | $325 million
|
| Maturity: | June 15, 2039
|
| Coupon: | 7.95%
|
| Price: | 99.659
|
| Yield: | 7.98%
|
| Spread: | Treasuries plus 335 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 335 bps
|
|
|
|
|
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