By Angela McDaniels
Tacoma, Wash., Nov. 26 - Apache Corp. began a tender offer for up to $850 million principal amount of its 2.625% notes due 2023, 3.25% notes due 2022, 3.625% notes due 2021, 4.75% notes due 2043 and 4.25% notes due 2044, according to a company news release.
The notes are listed in order of acceptance priority level.
The tender offer will expire at 11:59 p.m. ET on Dec. 19.
The total consideration for each $1,000 principal amount of notes tendered and accepted for purchase will be determined by reference to a fixed spread over the yield based on the bid-side price of the applicable U.S. Treasury reference security at 2 p.m. ET on Dec. 6.
The reference Treasuries, fixed spreads and hypothetical total consideration are noted in the table below.
In order to receive the total consideration, which includes an early tender payment of $30 per $1,000 principal amount of notes, holders must tender their notes by the early tender time, which is 5 p.m. ET on Dec. 5.
The company will pay accrued interest up to but excluding the settlement date, which is expected to be Dec. 20.
The tender offer is not conditioned on any minimum amount of notes being tendered.
The dealer managers are Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and RBS Securities Inc. (877 297-9832 or 203 897-4825). The tender agent and information agent is Global Bondholder Services Corp. (866 470-4300).
Apache is an oil and gas exploration and production company based in Houston.
Apache tender offer
| Notes | Principal amount | Reference Treasury | Fixed spread | Hypothetical total
|
| outstanding | consideration
|
| 2.625% notes due 2023 | $1.2 billion | 2.75% due Nov. 15, 2023 | 65 bps | $940.09
|
| 3.25% notes due 2022 | $1.1 billion | 2.75% due Nov. 15, 2023 | 50 bps | $1,000.14
|
| 3.625% notes due 2021 | $500 million | 2.75% due Nov. 15, 2023 | 15 bps | $1,044.96
|
| 4.75% notes due 2043 | $1.5 billion | 3.625% due Aug. 15, 2043 | 100 bps | $982.99
|
| 4.25% notes due 2044 | $800 million | 3.625% due Aug. 15, 2043 | 100 bps | $904.22
|
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