Existing Occidental notes trail as new tranches price; PG&E lower after equity offering

By James McCandless

San Antonio, June 26 – As the week came to a close, the distressed debt space was under pressure as new coronavirus cases weighed markets down.

Occidental Petroleum Corp.’s existing notes trailed in the run-up to the company’s sale of three tranches of new notes.

The 2.9% senior notes due 2024 gave up 1¼ points to close at 85¼ bid. The 2.7% senior notes due 2022 lost 1½ points to close at 93¾ bid.

Toward the end of Friday activity, the Houston-based independent oil and gas producer priced $2 billion of senior notes in three tranches, Prospect News reported.

With the proceeds, the company plans to fund a nine-tranche cash tender offer comprising senior notes due 2021 and 2022.

“Those left the gate at a 99 context,” a trader said.

The tender offer is set to expire on July 23.

Meanwhile, PG&E Corp.’s issues moved lower after an equity offering raised more than $5 billion for utility’s exit from bankruptcy.

The 6.05% notes due 2034 shaved off ½ point to close at 119½ bid.

On Friday morning, the San Francisco-based electric utilities provider announced that it had raised more than $5 billion from a sale of common stock and equity units.

© 2015 Prospect News.
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