Anadarko holders tender 55.58% of one series of notes; tender cap on offers reset to $472 million

By Susanna Moon

Chicago, March 16 - Anadarko Petroleum Corp. investors tendered $527,963,000 principal amount, or 55.58%, of the $950 million of 6¾% senior notes due May 1, 2011 issued by Anadarko Finance Co.

The tender offer for the 6¾% notes ended at 5 p.m. ET on March 15. The payment date was to be March 16.

Anadarko Petroleum began tender offers on March 9 for up to $1 billion principal amount of outstanding debt securities.

The company said that the maximum principal amount of notes to be purchased under the offers is now $472,037,000.

In the maximum tender offer, Anadarko is offering to purchase the $675 million of 6.875% notes due Sept. 15, 2011 issued by Kerr-McGee Corp. and the $169,748,000 of 6.125% notes due March 15, 2012 and $82,049,000 of 5% notes due Oct. 1, 2012 issued by Anadarko. These notes are listed in order of acceptance priority level.

The tender offers will expire at 5 p.m. ET on April 6.

Pricing for tender offers

The purchase price for the notes will be determined based on a fixed spread over the yield calculated using the bid-side price of the specified U.S. Treasury. The prices was to be calculated at 2 p.m. ET on March 15 for the any and all offer and at 2 p.m. ET on March 22 for the maximum tender offer.

The purchase price will include a $30.00 early tender premium per $1,000 principal amount of notes tendered in the maximum tender offer before the early tender date, which is 5 p.m. ET on March 22.

The spread is 50 basis points for the 6.75% notes and 6.875% notes, 85 bps for the 6.125% notes and 125 bps for the 5% notes. The reference Treasury is the 0.875% Treasury note due April 30, 2011 for the 6.75% notes, the 1% Treasury note due Aug. 31, 2011 for the 6.875% notes and the 0.875% Treasury note due Feb. 29, 2012 for the 6.125% notes and 5% notes.

The company will also pay accrued interest up to but excluding the settlement date, which is April 7 for the maximum tender offer.

The offers are subject to the satisfaction or waiver of some conditions that include the successful issuance of one or more new series of senior notes with net proceeds of at least $500 million.

The joint dealer managers are Deutsche Bank Securities Inc. (866 627-0391), Morgan Stanley & Co. Inc. (800 624-1808), Goldman, Sachs & Co. (212 357-4692) and UBS Securities LLC (888 719-4210). The depositary and information agent is D.F. King & Co., Inc. (888 567-1626).

Anadarko is an oil and gas exploration and production company based in the Woodlands, Texas.

© 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.