Occidental Petroleum sets talk in $1.5 billion two-part notes offering; pricing Tuesday

By Paul A. Harris

Portland, Ore., Dec. 8 – Occidental Petroleum Corp. set price talk in a $1.5 billion offering of senior notes (expected ratings Ba2/BB-/BB) coming in two bullet tranches, according to a syndicate source.

The public offering is coming in notes set to mature in December 2025, talked to yield 5½% to 5¾%, and notes set to mature in January 2031, talked to yield 6¼% to 6½%.

Tranche sizes will be a minimum of $500 million.

Books close at 1 p.m. ET on Tuesday, and the deal is set to price thereafter.

Lead left bookrunner RBC Capital Markets LLC will bill and deliver. J.P. Morgan Securities LLC, Barclays, HSBC Securities (USA) Inc. and SG Americas Securities LLC are joint active bookrunners. BofA Securities Inc., MUFG and SMBC Nikko Securities America Inc. are joint bookrunners.

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

The Houston-based energy company plans to use the proceeds to repay debt, including concurrent tender offers for certain maturities through 2023, and for general corporate purposes.

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