By Andrea Heisinger
New York, Nov. 30 - Apache Corp. priced $1 billion of senior notes (A3/A-/A-) in two tranches on Tuesday, a source away from the deal said.
The $500 million of 3.625% notes due 2021 priced at 98.97 to yield 3.747% with a spread of Treasuries plus 95 basis points. This was at the tight end of price talk in the 100 bps area, with a margin of plus or minus 5 bps.
A $500 million tranche of 5.25% bonds due 2042 sold at 98.313 to yield 5.361% with a 125 bps over Treasuries spread. The bonds priced at the tightest end of guidance in the 130 bps area, also with a margin of plus or minus 5 bps.
Both tranches have a make-whole call at 25 bps over Treasuries and feature a change-of-control put at 101%.
Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and RBS Securities Inc. were the bookrunners.
BMO Capital Markets Corp., Mitsubishi UFJ Securities International plc, Morgan Stanley & Co. Inc., RBC Capital Markets Corp., Standard Chartered Bank and UBS Securities LLC were the co-managers.
Proceeds will be used to repay debt assumed when completing the Mariner Energy acquisition on Nov. 10. The remainder will be used for general corporate purposes.
Apache's last bond sale was $1.5 billion of 5.1% 30-year bonds priced at 140 bps over Treasuries on Aug. 17.
The natural gas and crude oil exploration, development and production company is based in Houston.
| Issuer: | Apache Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Co-managers: | BMO Capital Markets Corp., Mitsubishi UFJ Securities International plc, Morgan Stanley & Co. Inc., RBC Capital Markets Corp., Standard Chartered Bank, UBS Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 3
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Notes due 2021
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2021
|
| Coupon: | 3.625%
|
| Price: | 98.97
|
| Yield: | 3.747%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 100 bps area, plus or minus 5 bps
|
|
|
| Bonds due 2042
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2042
|
| Coupon: | 5.25%
|
| Price: | 98.313
|
| Yield: | 5.361%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 130 bps area, plus or minus 5 bps
|
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