New Issue: Occidental Petroleum prices $2.75 billion of notes in three tranches

By Aleesia Forni

New York, March 28 – Occidental Petroleum Corp. sold $2.75 billion of senior notes (A3/A/A) in three tranches on Monday, according to an informed source and an FWP filed with the Securities and Exchange Commission.

A $400 million tranche of 2.6% six-year notes priced at 99.95 to yield 2.609%, or Treasuries plus 125 basis points.

The notes sold at the tight side of guidance set in the Treasuries plus 130 bps area, tightened from talk in the Treasuries plus 145 bps area.

And $1.15 billion of 3.4% 10-year notes priced with a 155 bps spread over Treasuries. The notes priced at 99.772 to yield 3.427%.

Guidance was in the Treasuries plus 160 bps area. Initially, talk was in the Treasuries plus 180 bps area.

Finally, $1.2 billion of 4.4% 30-year notes sold at 99.224 to yield 4.447%, or Treasuries plus 180 bps.

Pricing came at the tight end of guidance set in the Treasuries plus 185 bps area, which tightened from the Treasuries plus 205 bps area.

BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the active bookrunners. Passive bookrunners are HSBC Securities (USA) Inc., MUFG, Mizuho Securities USA Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.

Proceeds will be used to refinance the company’s $750 million of 4.125% notes due June 2016 and $1.25 billion of 1.75% notes due February 2017 and for general corporate purposes.

The oil and gas, chemical and midstream company is based in Los Angeles.

Issuer:	Occidental Petroleum Corp.
Issue:	Senior notes
Amount:	$2.75 billion
Bookrunners:	BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, HSBC Securities (USA) Inc., MUFG, Mizuho Securities USA Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc.
Co-managers:	BBVA Securities Inc., Barclays, BNY Mellon Capital Markets, LLC, Scotia Capital (USA) Inc., Standard Chartered Bank, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Lebenthal & Co., LLC
Trade date:	March 28
Settlement date:	April 4
Ratings:	Moody’s: A3
	Standard & Poor’s: A
	Fitch: A
Distribution:	SEC registered
Six-year notes
Amount:	$400 million
Maturity:	April 15, 2022
Coupon:	2.6%
Price:	99.95
Yield:	2.609%
Spread:	Treasuries plus 125 bps
Price guidance:	Treasuries plus 130 bps area, tightened from Treasuries plus 145 bps area
Make-whole call:	Treasuries plus 20 bps prior to March 15, 2022, then callable at par
10-year notes
Amount:	$1.15 billion
Maturity:	April 15, 2026
Coupon:	3.4%
Price:	99.772
Yield:	3.427%
Spread:	Treasuries plus 155 bps
Price guidance:	Treasuries plus 160 bps area, tightened from Treasuries plus 180 bps area
Make-whole call:	Treasuries plus 25 bps prior to Jan. 15, 2026, then callable at par
30-year notes
Amount:	$1.2 billion
Maturity:	April 15, 2046
Coupon:	4.4%
Price:	99.224
Yield:	4.447%
Spread:	Treasuries plus 180 bps
Price guidance:	Treasuries plus 185 bps area, tightened from Treasuries plus 205 bps area
Make-whole call:	Treasuries plus 30 bps prior to Oct. 15, 2045, then callable at par

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