Occidental notes rise as new tranches price; U.S. Steel paper gains amid acquisition

By James McCandless

San Antonio, Dec. 8 – Energy and manufacturing names were the focus during Tuesday’s distressed debt session.

Occidental Petroleum Corp.’s notes rose as the company brought a two-part offering of senior notes to market.

The 2.9% senior notes due 2024 added ¼ point to close at 95¼ bid. The 2.7% senior notes due 2022 rose ¾ point to close at 100½ bid.

As the market closed on Tuesday, the Houston-based independent oil and gas producer priced a $2 billion offering of senior notes, Prospect News reported.

The deal included $750 million of five-year notes that priced at par to yield 5½% and $1.25 billion of 10-year notes that priced at par to yield 6 1/8%.

Proceeds of the new notes are being used to repurchase existing notes.

Meanwhile, United States Steel Corp.’s notes gained after the company announced that it would be purchasing the remaining stake in Blue River Steel.

The 6.65% senior notes due 2037 inched up ¼ point to close at 90½ bid. The 6 7/8% senior notes due 2025 garnered ¾ point to close at 97½ bid.

Before the market opened on Tuesday, the Pittsburgh-based steelmaker announced that it would exercise its call option to purchase the remaining outstanding stake in Blue River Steel.

© 2015 Prospect News.
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