Anadarko accepts tenders for $1.25 billion 6.375% notes; cap lifted

By Susanna Moon

Chicago, April 22 – Anadarko Petroleum Corp. said it increased the maximum tender amount by $250 million to $1.25 billion principal amount in the offer for its $2 billion outstanding 6.375% senior notes due 2017.

As of 5 p.m. ET on April 21, the early tender date, investors had tendered $1.43 billion of the 6.375% notes.

Anadarko will accept for purchase $1.25 billion of the tendered notes on a prorated basis, with settlement set for April 25, according to a company notice.

As announced April 8, Anadarko was tendering to purchase up to $1 billion principal amount of the 6.375% notes until 11:59 p.m. ET on May 5.

Because the offer has been oversubscribed as of the early deadline, however, Anadarko said it will accept only the notes tendered by the early date on a prorated basis and will not accept any notes tendered after the early deadline.

Pricing was scheduled for 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.

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 the early deadline.

Holders who tendered their notes after the early deadline would have received the total payment less the early tender premium.

The company also will pay accrued interest up to but excluding the settlement date.

Tendered notes may no longer be withdrawn, as of the early tender date.

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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