Anadarko tenders for up to $1 billion of 6.375% senior notes due 2017

By Susanna Moon

Chicago, April 8 – Anadarko Petroleum Corp. said it began a tender offer to purchase up to $1 billion principal amount of its $2 billion outstanding 6.375% senior notes due 2017.

Pricing will be set at 2 p.m. ET on April 22 using the yield of the bid-side price of the 0.875% U.S. Treasury note due March 31, 2018 plus a spread of 90 basis points, according to a company notice.

The hypothetical total purchase price was set at $1,065.31 per $1,000 principal amount, using a reference yield of 0.7% as of 2 p.m. ET on April 7 and tender offer yield of 1.6%.

The total purchase price will include an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on April 21, the early tender date.

Holders who tender their notes after the early deadline will receive the total payment less the early tender premium.

The company also will pay accrued interest up to but excluding the settlement date, which will be April 25 for early tendered notes and May 6 for remaining tenders.

The tender offer will end at 11:59 p.m. ET on May 5.

Tendered notes may be withdrawn before the early tender date.

Anadarko said it reserves the right to increase the maximum tender amount.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and Goldman Sachs & Co. (800 828-3182 or 212 357-0422) are the dealer managers. D.F. King & Co., Inc. (800 387-0017, 212 269-5550 or apc@dfking.com) is the information agent and tender agent.

Anadarko Petroleum is a Woodlands, Texas, oil and gas exploration and production company.

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