Occidental tenders for up to $2.5 billion notes from eight series

By Rebecca Melvin

Concord, N.H., June 29 – Occidental Petroleum Corp. commenced cash tender offers to purchase up to $2.5 billion of eight series of outstanding notes, according to a company news release.

There is a sub-cap of $300 million in the case of the 3.4% notes due 2026.

The notes included in the offer, listed in order of acceptance priority level, are:

• $629.12 million outstanding of 2.7% senior notes due 2022 (Cusip: 674599CP8) for a total consideration of $970.00 per $1,000 of notes tendered;

• $926,608,000 outstanding of 2.7% senior notes due 2023 (Cusip: 674599CE3) for a total consideration of $972.50 per $1,000 of notes tendered;

• $233,062,000 outstanding of 3.45% senior notes due 2024 (Cusip: 674599CE35) for a total consideration of $970 per $1,000 of notes tendered;

• $3 billion outstanding of 2.9% senior notes due 2024 (Cusip: 674599CW3) for a total consideration of $980.00 per $1,000 of notes tendered;

• $750 million outstanding of 3½% senior notes due 2025 (Cusip: 674599CG8) for a total consideration of $980.00 per $1,000 of notes tendered;

• $1.15 billion outstanding of 3.4% senior notes due 2026 (Cusip: 674599CH6) for a total consideration of $972.40 per $1,000 of notes tendered;

• $1 billion outstanding of 3.2% senior notes due 2026 (Cusip: 674599CR4) for a total consideration of $957.50 per $1,000 of notes tendered; and

• $1,052,091,000 outstanding of floating-rate notes due 2022 (Cusip: 674599CQ6) for a total consideration of $950 per $1,000 of notes tendered.

In each case, the total consideration includes an early tender premium of $50 per $1,000 of notes tendered that will be paid only to holders who tender notes prior to the early tender deadline, 5 p.m. ET on July 13.

Occidental is also soliciting consents from the holders of five series of notes for proposed amendments that would, among other things, eliminate certain restrictive covenants contained in the indentures governing the subject notes. The notes are the 2.7% 2023 notes, 3.45% 2024 notes, 2.9% 2024 notes, 3½% 2025 notes and the floaters due 2022.

Adoption of the proposed amendments with respect to each such series of notes requires the requisite consents for that series.

The offers are conditioned upon the satisfaction or waiver of conditions set forth in the offer to purchase.

The offers will expire at 11:59 p.m. ET on July 27.

Barclays Capital Inc. (800 438-3242, 212 528-7581), BofA Securities, Inc. (980 388-3646, debt_advisory@bofa.com), MUFG Securities Americas Inc. (877 744-4532, 212 405-7481), RBC Capital Markets, LLC (877 381-2099, 212 618-7843) and Wells Fargo Securities, LLC (866 309-6316, 704 410-4756) are the lead dealer managers and lead solicitation agents.

Global Bondholder Services Corp. (212 430-3774, 866 807-2200; contact@gbsc-usa.com) is the tender agent and information agent.

Occidental is a Houston oil and gas, chemical and midstream company.

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