By Andrea Heisinger
New York, Nov. 28 - Apache Corp. on Wednesday priced $2 billion of senior notes (A3/A-/A-) in two tranches, an informed source said.
A $1.2 billion tranche of 2.625% notes due 2023 was priced at 99.469 to yield 2.685% with a spread of Treasuries plus 105 basis points. The tranche carries a make-whole call at Treasuries plus 15 bps.
An $800 million tranche of 4.25% bonds due 2044 was sold at 99.14 to yield 4.3% with a spread of 150 bps over Treasuries. The bonds have a make-whole call at Treasuries plus 25 bps.
The issue features a change-of-control put at 101%.
Active bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
Proceeds will be used to repay commercial paper borrowings and for general corporate purposes.
Apache last tapped the bond market with a $3 billion sale in three tranches on April 3, 2012. The sale included a 3.25% 10-year note priced at 100 bps over Treasuries and 4.75% long 30-year bonds at Treasuries plus 135 bps.
The Houston-based energy company does exploration, transportation and production for natural gas, crude oil and natural gas liquids.
| Issuer: | Apache Corp.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | BMO Capital Markets, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC, RBS Securities Inc., UBS Securities LLC, Wells Fargo Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 28
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| 10-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Jan. 15, 2023
|
| Coupon: | 2.625%
|
| Price: | 99.469
|
| Yield: | 2.685%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 30-year notes
|
| Amount: | $800 million
|
| Maturity: | Jan. 15, 2044
|
| Coupon: | 4.25%
|
| Price: | 99.14
|
| Yield: | 4.3%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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