New Issue: Anadarko Petroleum prices $3 billion of split-rated five-, 10-, 30-year notes

By Cristal Cody

Eureka Springs, Ark., March 14 – Anadarko Petroleum Corp. priced a $3 billion split-rated three-tranche offering of senior notes due 2021, 2026 and 2046 on Monday, according to an FWP filing with the Securities and Exchange Commission and market sources.

The company sold $800 million of 4.85% five-year senior notes at 99.974 to yield 4.856%, or 337.5 basis points over Treasuries. The notes were talked to price at 350 bps over Treasuries, plus or minus 12.5 bps.

The $1.1 billion tranche of 5.55% 10-year senior notes priced at 99.69 to yield 5.591%. The notes were sold with a spread of 362.5 bps over Treasuries, at the tight end of guidance of 375 bps over Treasuries, plus or minus 12.5 bps.

Anadarko Petroleum also brought $1.1 billion of 6.6% 30-year senior notes at 99.923 to yield 6.606%, or 387.5 bps over Treasuries. The bonds were guided at Treasuries plus 400 bps, plus or minus 12.5 bps.

The bookrunners were Barclays, BofA Merrill Lynch, Mizuho Securities USA Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.

Proceeds will be used to refinance the company’s 5.95% senior notes due in September 2016, to refinance a portion of its 6.375% senior notes due in September 2017 and for general corporate purposes.

Anadarko Petroleum is a Woodlands, Texas-based independent oil exploration and production company.

Issuer:	Anadarko Petroleum Corp.
Amount:	$3 billion
Securities:	Senior notes
Bookrunners:	Barclays, BofA Merrill Lynch, Mizuho Securities USA Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
Co-managers:	Citigroup Global Markets Inc.; MUFG; BNP Paribas Securities Corp.; Credit Agricole Securities (USA) Inc.; Credit Suisse Securities (USA) LLC; DNB Markets, Inc.; Goldman Sachs & Co.; SG Americas Securities, LLC; Standard Chartered Bank; SMBC Nikko Securities America, Inc.; Scotia Capital (USA) Inc.; UBS Securities LLC; Standard Bank of South Africa Ltd.; BNY Mellon Capital Markets, LLC
Trade date:	March 14
Settlement date:	March 17
Ratings:	Moody’s: Ba1
	Standard & Poor’s: BBB
	Fitch: BBB
Distribution:	SEC registered
Five-year notes
Amount:	$800 million
Maturity:	March 15, 2021
Coupon:	4.85%
Price:	99.974
Yield:	4.856%
Spread:	337.5 bps over Treasuries
Call feature:	Before Feb. 15, 2021 at greater of principal amount of notes or discounted value at Treasuries plus 50 bps plus accrued interest
Price talk:	350 bps over Treasuries, plus or minus 12.5 bps
10-year notes
Amount:	$1.1 billion
Maturity:	March 15, 2026
Coupon:	5.55%
Price:	99.69
Yield:	5.591%
Spread:	362.5 bps over Treasuries
Call feature:	Before Dec. 15, 2025 at greater of principal amount of notes or discounted value at Treasuries plus 50 bps plus accrued interest
Price talk:	362.5 bps over Treasuries, plus or minus 12.5 bps
30-year notes
Amount:	$1.1 billion
Maturity:	March 15, 2046
Coupon:	6.6%
Price:	99.923
Yield:	6.606%
Spread:	387.5 bps over Treasuries
Call feature:	Before Sept. 15, 2045 at greater of principal amount of notes or discounted value at Treasuries plus 50 bps plus accrued interest
Price talk:	387.5 bps over Treasuries, plus or minus 12.5 bps

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