Occidental Petroleum active as new notes offered; Rite Aid better as exchange starts

By James McCandless

San Antonio, June 25 – The distressed debt market spent Thursday focused on names making financing maneuvers in the energy and retail sectors.

Occidental Petroleum Corp.’s notes varied in direction as the company kicks off an offering of three tranches to fund a tender offer.

The 2.9% senior notes due 2024 were docked 1 point to close at 86½ bid. The 2.7% senior notes due 2022 rose ½ point to close at 95¼ bid.

The Houston-based independent oil and gas producer expects to price senior bullet notes in three benchmark tranches on Friday, Prospect News reported.

With the proceeds of the offering, the company plans to fund cash tender offers and consent solicitations for up to $1.5 billion of nine series of senior notes due 2021 and 2022.

In the retail space, Rite Aid Corp.’s notes saw better levels after it announced the start of a cash tender offer.

The 6 1/8% senior notes due 2023 gained 2¼ points to close at 97¼ bid.

During the Thursday session, the Camp Hill, Pa.-based drug store name announced that it has begun an exchange offer for up to $750 million principal amount of its 2023 notes for newly issued 8% senior secured notes due 2026 plus cash, Prospect News reported.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.