Occidental gives early results, ups tender offers to $2.3 billion

By Cady Vishniac

Detroit, Dec. 21 – Occidental Petroleum Corp. has announced early results of its cash offers for five series of notes in a company press release.

Results for the notes included in the offer, listed in order of acceptance priority level, are:

• $126,274,000 tendered and accepted out of $350,095,000 outstanding of 2.6% senior notes due 2021 (Cusip: 674599CU7) at $1,012.50 per $1,000 of notes;

• $537,991,000 tendered and accepted out of $813.69 million outstanding of 3 1/8% senior notes due 2022 (Cusip: 674599CC7) at $1,017.50 per $1,000 of notes;

• $127,540,000 tendered and accepted out of $228,645,000 outstanding of 2.6% senior notes due 2022 (Cusip: 674599CK9) at $1,005 per $1,000 of notes;

• $1,269,325,000 tendered and accepted out of $1,898,445,000 outstanding of 2.7% senior notes due 2022 (Cusip: 674599CP8) at $1,012.50 per $1,000 of notes; and

• $212,434,000 accepted from the $411,265,000 tendered out of $1,139,042,000 outstanding of 2.7% senior notes due 2023 (Cusip: 674599CE3) at $995 per $1,000 of notes with a proration factor of 51.7%.

In each case, the purchase price includes an early tender premium of $50 per $1,000 of notes tendered that will be paid only to holders who tendered notes prior to the early tender deadline, 5 p.m. ET on Dec. 18.

In order to accept these amounts of tendered notes, the company raised its maximum purchase price to $2.3 billion from $2 billion. A previous increase on Dec. 8 had already brough the purchase price to $2 billion from $1.5 billion.

The sub-cap in the case of the 2.7% notes due 2023 remains at $500 million after an increase from $150 million on Dec. 8. These notes were prorated after the aggregate cap was exceeded.

The offers were set to expire at 11:59 p.m. ET on Jan. 5, but the company says it does not plan to accept any further tenders as the offer is fully subscribed.

Occidental intends to fund the tender offers with proceeds from a concurrent registered offering of senior unsecured notes.

Occidental also solicited consents from the holders of the notes for proposed amendments that would, among other things, eliminate certain restrictive covenants contained in the indentures governing the subject notes. The requisite consents were received for all the 2021 and 2022 notes, and the company plans to execute supplemental indentures for those notes. Requisite consents for the 2023 notes were not received, and the indenture of those notes will remain in place.

RBC Capital Markets, LLC (877 381-2099, 212 618-7843), J.P. Morgan Securities LLC (866 834-4666, 212 834-2045), Barclays Capital Inc. (800 438-3242, 212 528-7581), HSBC Securities (USA) Inc. (888 4722-456, 212 525-5552) and SG Americas Securities, LLC (855 881-2108, 212 278-7886) were the lead dealer managers and lead solicitation agents.

Global Bondholder Services Corp. (212 430-3774, 866 807-2200; contact@gbsc-usa.com) was the tender agent and information agent.

Occidental is a Houston oil and gas, chemical and midstream company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.