Occidental restates revolver for reduced commitments, extended maturity

By Marisa Wong

Los Angeles, Dec. 13 – Occidental Petroleum Corp. entered into a second amended and restated credit agreement on Dec. 10 with JPMorgan Chase Bank, NA as administrative agent to reduce revolver commitments and extend the maturity, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates Occidental’s amended and restated credit agreement dated June 3, 2019 with JPMorgan as administrative agent.

The amendment reduces commitments under the existing revolver to $4 billion from $5 billion and extends the maturity to June 30, 2025 from Jan. 31, 2023.

Loans will bear interest at adjusted SOFR plus an applicable margin that fluctuates between 100 basis points and 190 bps based on the company’s long-term unsecured senior non-credit enhanced debt ratings.

The company will also pay a facility fee ranging from 12.5 bps to 35 bps, depending on ratings.

The interest rate margin and the facility fee rates are also subject to adjustments based on Occidental’s performance on specified sustainability target thresholds with respect to absolute reductions in greenhouse gas emissions from its worldwide operated assets, which will be subject to limited assurance verification by a qualified independent external reviewer.

The restated revolver’s covenants and events of default are substantially identical to the covenants and events of default under the prior credit agreement, including a customary negative pledge and a covenant that Occidental will maintain, as of the last day of each fiscal quarter, a ratio not in excess of 0.65 to 1.00 of total debt to total capitalization.

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

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