Summary
Occidental Petroleum Corporation (OXY) announced on October 20, 2008, that it entered into an Underwriting Agreement on October 16, 2008, to issue and sell $1 billion in aggregate principal amount of 7% Senior Notes due 2013. These notes were offered at a public price of 99.136% of their principal amount, resulting in net proceeds of approximately $984.4 million after deducting underwriting discounts and estimated offering expenses. The primary purpose of this offering is to raise capital for general corporate purposes. The new notes will bear interest at 7% annually, payable semi-annually, with the first payment due May 1, 2009. The notes mature on November 1, 2013, and Occidental retains the option to redeem them prior to maturity. This offering was conducted under Occidental's automatic shelf registration statement.
Key Highlights
- 1Occidental Petroleum issued $1 billion in 7% Senior Notes due 2013.
- 2Net proceeds from the offering are approximately $984.4 million.
- 3Funds raised will be used for general corporate purposes.
- 4The notes will mature on November 1, 2013.
- 5Interest rate on the notes is fixed at 7% per annum, payable semi-annually.
- 6The offering was made through an Underwriting Agreement with Banc of America Securities LLC and J.P. Morgan Securities Inc.