Published on 10/16/2008 in the Prospect News Investment Grade Daily.
New Issue: Occidental sells upsized $1 billion 7% five-year notes at Treasuries plus 437.5 bps
By Andrea Heisinger
New York, Oct. 16 - Occidental Petroleum Corp. priced $1 billion of 7% five-year senior notes Thursday to yield Treasuries plus 437.5 basis points, according to an FWP filing with the Securities and Exchange Commission.
The issue was increased from $750 million and was priced in line with talk, a source close to the deal said.
The notes (A2/A/A) priced at 99.136 to yield 7.207%. They have a make-whole redemption option of Treasuries plus 50 bps.
Bookrunners were Banc of America Securities LLC and J.P. Morgan Securities Inc.
Co managers were Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Greenwich Capital Markets, Inc., Scotia Capital (USA) Inc., Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., SG Americas Securities, LLC and UBS Securities LLC.
Proceeds will be used for general corporate purposes.
The oil, gas and chemical company is based in Los Angeles.
| Issuer: | Occidental Petroleum Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | Nov. 1, 2013
|
| Bookrunners: | Banc of America Securities LLC, J.P. Morgan Securities Inc.
|
| Co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Greenwich Capital Markets, Inc., Scotia Capital (USA) Inc., Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., SG Americas Securities, LLC, UBS Securities LLC
|
| Coupon: | 7%
|
| Price: | 99.136
|
| Yield: | 7.207%
|
| Spread: | Treasuries plus 437.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 21
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
| Price talk: | 437.5 bps
|
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