Published on 8/3/2020 in the Prospect News High Yield Daily.
New Issue: Apache sells upsized $1.25 billion notes in two bullet tranches
By Paul A. Harris
Portland, Ore., Aug. 3 – Apache Corp. priced an upsized $1.25 billion of high-yield notes (Ba1/BB+/BB+) in two bullet tranches on Tuesday, according to market sources.
The deal included $500 million of five-year notes that priced at par to yield 4 5/8% and an upsized $750 million of seven-year notes that priced at par to yield 4 7/8%.
The seven-year notes tranche was upsized from $500 million.
The overall amount of issuance increased from $1 billion.
Notes in both tranches were up ½ point in late Monday trading, a source said.
J.P. Morgan Securities LLC was the lead bookrunner. Additional joint bookrunning managers were BofA Securities, Inc., BMO Capital Markets Corp., Scotia Capital (USA) Inc., Barclays Capital Inc., Citigroup Global Markets Inc. Mizuho Securities USA LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, Truist Securities, Inc., Wells Fargo Securities, LLC and RBC Capital Markets, LLC.
The Houston-based oil and gas exploration and production company plans to use the proceeds to fund tender offers to purchase notes from seven series.
| Issuer: | Apache Corp.
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| Amount: | $1.25 billion, increased from $1 billion
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| Lead: | J.P. Morgan Securities LLC
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| Joint bookrunners: | BofA Securities, Inc., BMO Capital Markets Corp., Scotia Capital (USA) Inc., Barclays Capital Inc., Citigroup Global Markets Inc. Mizuho Securities USA LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, Truist Securities, Inc., Wells Fargo Securities, LLC and RBC Capital Markets, LLC
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| Trade date: | Aug. 3
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| Ratings: | Moody's: Ba1
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| S&P: BB+
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| Fitch: BB+
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| Five-year notes
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| Amount: | $500 million
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| Tenor: | Five years
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| Coupon: | 4 5/8%
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| Price: | Par
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| Yield: | 4 5/8%
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| Call: | Make-whole call until six months prior to maturity, then callable at par
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|
| Seven-year notes
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| Amount: | $750 million, increased from $500 million
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| Tenor: | Seven years
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| Coupon: | 4 7/8%
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| Price: | Par
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| Yield: | 4 7/8%
|
| Call: | Make-whole call until six months prior to maturity, then callable at par
|
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