By Paul A. Harris
Portland, Ore., Dec. 8 – Occidental Petroleum Corp. priced an upsized $2 billion of senior notes (expected ratings Ba2/BB-/BB) in two bullet tranches on Tuesday, according to a syndicate source.
The deal included $750 million of five-year notes that priced at par to yield 5½%, at the tight end of the yield 5½% to 5¾% yield talk.
The offering also included $1.25 billion of 10-year notes that priced at par to yield 6 1/8%, 12.5 basis points tighter than the 6¼% to 6½% yield talk.
The overall amount of issuance increased from $1.5 billion.
Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Joint active bookrunners were J.P. Morgan Securities LLC, Barclays, HSBC Securities (USA) Inc. and SG Americas Securities LLC. Additional joint bookrunners were BofA Securities Inc., MUFG and SMBC Nikko Securities America Inc.
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.
| Issuer: | Occidental Petroleum Corp.
|
| Amount: | $2 billion, increased from $1.5 billion
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| Lead left bookrunner: | RBC Capital Markets LLC
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| Joint active bookrunners: | J.P. Morgan Securities LLC, Barclays, HSBC Securities (USA) Inc. and SG Americas Securities LLC
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| Joint bookrunners: | BofA Securities Inc., MUFG and SMBC Nikko Securities America Inc.
|
| Senior co-managers: | 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
|
| Co-managers: | U.S. Bancorp Investments Inc., BNY Mellon Capital Markets LLC and Williams Capital Group LP
|
| Trade date: | Dec. 8
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| Expected ratings: | Moody's: Ba2
|
| S&P: BB-
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| Fitch: BB
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| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Notes due 2025
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| Amount: | $750 million
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| Maturity: | Dec. 1, 2025
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| Coupon: | 5½%
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| Price: | Par
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| Yield: | 5½%
|
| Spread: | 512 bps
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| Call protection: | Non-callable
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| Price talk: | 5½% to 5¾%
|
|
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| Notes due 2031
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| Amount: | $1.25 billion
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| Maturity: | Jan. 1, 2031
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| Coupon: | 6 1/8%
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| Price: | Par
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| Yield: | 6 1/8%
|
| Spread: | 522 bps
|
| Call protection: | Non-callable
|
| Price talk: | 6¼% to 6½%
|
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