By Cristal Cody
Tupelo, Miss., June 5 – Apache Corp. priced $1 billion of senior notes (Baa3/BBB/BBB) in two tranches on Wednesday, according to a market source.
The company sold $600 million of 4.25% long 10-year notes at a spread of 215 basis points over Treasuries. The notes priced tighter than talk.
Apache priced $400 million of 5.35% 30-year notes at a Treasuries plus 275 bps spread.
The notes priced at the tight side of initial talk.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for tender offers for up to $1 billion of notes and for general corporate purposes.
Apache is an oil and natural gas exploration and production company based in Houston.
| Issuer: | Apache Corp.
|
| Amount: | $1 billion
|
| Description: | Senior secured notes
|
| Bookrunners: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Trade date: | June 5
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 15, 2030
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 215 bps
|
| Call features: | Make-whole call until three months prior to maturity, then callable at par
|
| Price talk: | Treasuries plus 230 bps area
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | July 1, 2049
|
| Coupon: | 5.35%
|
| Spread: | Treasuries plus 275 bps
|
| Call features: | Make-whole call until six months prior to maturity, then callable at par
|
| Price talk: | Treasuries plus 280 bps area
|
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