Occidental Petroleum expected to price notes in three benchmark tranches on Friday

By Paul A. Harris

Portland, Ore., June 25 – Occidental Petroleum Corp. expects to price senior bullet notes (existing ratings Ba1/BB+/BB-) in three benchmark tranches on Friday, according to market sources.

The public offering is coming in tranches of five-year notes with initial guidance in the high 7% area, seven-year notes guided 50 basis points behind the five-year notes, and 10-year notes guided 50 bps behind the seven-year notes.

The deal was set to be shopped on a late Thursday morning conference call with investors.

Citigroup Global Markets Inc. is the lead bookrunner. J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Barclays, BofA Securities Inc., HSBC Securities (USA) Inc., MUFG, SG CIB and SMBC Nikko Securities America Inc. are the joint bookrunners.

BBVA Securities Inc., Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and Standard Chartered Bank are the senior co-managers.

BNP Paribas Securities Corp., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc., BNY Mellon Capital Markets LLC and CIBC World Markets Corp. are the co-managers.

The five-year notes feature a par call three months prior to maturity. The notes in the seven- and 10-year tranches feature par calls six months prior to maturity. The notes in all tranches are otherwise non-callable.

The Houston-based energy company plans to use the proceeds to fund a concurrent tender offer for certain of its senior notes and to refinance debt.

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