By Susanna Moon
Chicago, Dec. 6 - Apache Corp. said investors had tendered about $2.7 billion of notes as of 5 p.m. ET on Dec. 5, the early tender date, in the oversubscribed offer for five series of its notes.
The company said on Nov. 26 that it was tendering for up to $850 million principal amount of the notes.
By the early deadline, investors had tendered $668,616,000, or 55.72%, of the 2.625% notes due 2023; $661,774,000, or 60.16%, of the 3.25% notes due 2022; $202,772,000, or 40.55%, of the 3.625% notes due 2021; $791,119,000, or 52.74%, of the 4.75% notes due 2043; and $396,238,000, or 49.53%, of the 4.25% notes due 2044. The notes are listed in order of acceptance priority level.
As the offer has been oversubscribed, the company expects that no tendered notes with priority levels of 3 to 5 will be accepted in the offer, according to a company news release.
Tendered notes may no longer be withdrawn, as of the early deadline.
The tender offer is set to end at 11:59 p.m. ET on Dec. 19.
Pricing for each $1,000 principal amount of notes will be set at 2 p.m. ET on Dec. 6 using a fixed spread over the yield on the bid-side price of a U.S. Treasury reference security.
The reference Treasuries, fixed spreads and hypothetical total purchase price are noted in the table below.
The total payout includes an early tender payment of $30 per $1,000 principal amount of notes tendered by the early tender deadline.
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 payment
|
| 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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