Anadarko accepts $1.25 billion 6.375% notes for purchase, sets pricing

By Angela McDaniels

Tacoma, Wash., April 22 – Anadarko Petroleum Corp. increased the tender offer cap for its $2 billion outstanding 6.375% senior notes due 2017 and announced the purchase price it will pay in the tender offer.

The company increased the maximum principal amount of notes it will purchase to $1.25 billion from $1 billion.

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, according to a company news release.

The offer will expire at 11:59 p.m. ET on May 5. However, because the offer has been oversubscribed as of the early deadline, Anadarko will not accept any notes tendered after the early deadline.

The company will pay $1,063.56 per $1,000 principal amount plus accrued interest up to but excluding the settlement date, April 25. This includes an early tender premium of $30.00.

Pricing was set using the yield of the bid-side price of the 0.875% Treasury note due March 31, 2018 at 2 p.m. ET on April 22 plus a spread of 90 basis points. The reference yield was 0.822%, and the tender offer yield is 1.722% excluding accrued interest.

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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