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Occidental Petroleum sets talk in benchmark three-part junk offering; books close Friday afternoon
By Paul A. Harris
Portland, Ore., June 26 – Occidental Petroleum Corp. set price talk in its offering of senior bullet notes (Ba2/BB+/BB) coming in three benchmark tranches, according to market sources.
The offering includes five-year notes talked to yield 7¾% to 8%. Initial guidance was in the high 7% area.
The offering also includes seven-year notes talked to yield 8¼% to 8½%, in line with early guidance that had the seven-year notes coming 50 basis points behind the five-year notes.
The long tranche features 10-year notes talked to yield 8¾% to 8 7/8%. Early guidance had the 10-year notes coming 50 bps behind the seven-year notes.
Books close at 12:45 p.m. ET on Friday.
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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