Occidental Petroleum sells $1.5 billion; AT&T, Time Warner remain soft; Wabtec tightens

By Cristal Cody

Eureka Springs, Ark., Nov. 2 – Occidental Petroleum Corp. priced $1.5 billion of senior notes in two parts on Wednesday, while bonds traded mixed in the secondary market.

Occidental Petroleum priced $750 million of 3% notes due Feb. 15, 2027 at 99.579 to yield 3.047%. The long 10-year notes priced with a spread of 125 basis points over Treasuries.

In the second tranche, Occidental Petroleum sold $750 million of 4.1% notes due Feb. 15, 2047 at 99.776 to yield 4.112%, or 155 bps plus Treasuries.

The Federal Reserve’s Federal Open Market Committee kept rates unchanged following the conclusion of the policy meeting.

AT&T Inc.’s notes were mixed in the secondary market but remain well off trading levels seen before the company announced plans in October to acquire Time Warner Inc. in an $85.4 billion cash-and-stock deal.

Time Warner’s notes traded about 1 bp to 4 bps softer over the day.

The deal must pass antitrust regulators’ scrutiny. The U.S. Justice Department on Wednesday filed suit against AT&T’s DirecTV subsidiary that alleges efforts to block carrying a Los Angeles Dodgers channel.

Earlier, Wabtec Corp.’s 3.45% senior notes due 2026 priced on Monday traded about 5 bps better in the secondary market.

Danone SA’s 2.947% notes due 2026 traded mostly wrapped around issuance.

The Markit CDX North American Investment Grade index closed the day 1 bp softer at a spread of 80 bps.

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