By Andrea Heisinger
New York, Aug. 9 - Anadarko Petroleum Corp. priced an upsized $2 billion of seven-year notes on Monday at par to yield 6.375%, an informed source who worked on the sale said.
The notes were priced tighter than talk in the 6.5% yield area. The size was initially $1.5 billion but was increased by $500 million when the deal was launched.
The notes (Ba1/BBB-/BBB-) sold at a spread of Treasuries plus 415.6 basis points. They have a make-whole call at Treasuries plus 50 bps.
J.P. Morgan Securities Inc. and Barclays Capital Inc. were the active bookrunners. Passive bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc., Goldman Sachs & Co. Inc., Morgan Stanley & Co. Inc. and UBS Investment Bank.
Co-managers were Bank of America Merrill Lynch, DnB NOR Markets Inc., RBS Securities Inc., Societe Generale and Wells Fargo Securities.
Proceeds are going to repay an outstanding $1.3 billion in a Midstream subsidiary note, with any remainder used for general corporate purposes.
The oil and gas exploration and production company is based in The Woodlands, Texas.
| Issuer: | Anadarko Petroleum Corp.
|
| Issue: | Senior unsecured notes
|
| Amount: | $2 billion, increased from $1.5 billion
|
| Maturity: | Sept. 15, 2017
|
| Bookrunners: | J.P. Morgan Securities Inc., Barclays Capital Inc. (active), Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc., Goldman Sachs & Co. Inc., Morgan Stanley & Co. Inc., UBS Investment Bank (passive)
|
| Co-managers: | Bank of America Merrill Lynch, DnB NOR Markets Inc., RBS Securities Inc., Societe Generale, Wells Fargo Securities
|
| Coupon: | 6.375%
|
| Price: | Par
|
| Yield: | 6.375%
|
| Spread: | Treasuries plus 415.6 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 12
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 6.5% yield area
|
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