Anadarko to buy $500 million of 3.45% notes, 4.85% notes in oversubscribed tender; pricing set

By Susanna Moon

Chicago, Dec. 11 – Anadarko Petroleum Corp. said it plans to accept $377,035,000 of 3.45% notes due 2024 and $122,965,000 of 4.85% notes due 2021 tendered as of the early deadline at 5 p.m. ET on Dec. 10.

As announced Nov. 27, the issuer was tendering for up to $500 million principal amount of three series of its notes.

The offer was set to expire at 11:59 p.m. ET on Dec. 24 but the offer has been oversubscribed as of the early deadline.

Holders had tendered the following amount of notes as of the early deadline, with the issues listed in order of acceptance priority and pricing was set at 11 a.m. ET on Dec. 11 per $1,000 principal amount:

• $377,035,000 of the $625 million of 3.45% notes due 2024 at a total purchase price of $963.67 with pricing set using the yield of the bid-side price of the 2.875% U.S. Treasury note due Oct. 31, 2023 plus a spread of 145 basis points for a reference yield of 2.735%;

• $606,578,000 of the $800 million of 4.85% notes due 2021 for a total purchase price of $1,026.11 with pricing based on the yield of the bid-side price of the 2.875% U.S. Treasury note due Nov. 15, 2021 plus a spread of 85 bps for a reference yield of 2.74%; and

• $386,047,000 of the $1.1 billion of 5.55% notes due 2026.

Anadarko plans to accept for purchase all of the tendered 2024 notes, $122,965,000 of the 2021 notes using a proration factor of about 20.3% and none of the 2026 notes, according to a company update on Tuesday.

In each case, the total amount includes an early tender premium of $30.00 per $1,000 principal amount that will be paid to holders who tendered by the early deadline.

The company also will pay accrued interest up to but excluding the settlement date, which is expected to be Dec. 12 for early tendered notes and Dec. 27 for any remaining tenders.

Tenders may not be withdrawn after the early deadline.

Anadarko said the reason for the tender offer is to reduce its outstanding debt and its future interest expenses.

Credit Agricole Securities (USA) Inc. (866 807-6030 or 212 261-7802) and Deutsche Bank Securities (866 627-0391 or 212 250-2955) are the dealer managers. D.F. King & Co., Inc. (888 605-1957, 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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