Summary
Occidental Petroleum Corporation (OXY) announced on August 19, 2011, the closing of a significant debt offering. The company successfully issued and sold $1.25 billion in 1.75% Senior Notes due 2017 and $900 million in 3.125% Senior Notes due 2022. This combined offering of $2.15 billion in aggregate principal amount was priced at a slight discount to par, with net proceeds expected to be approximately $2.1 billion after accounting for underwriting discounts and estimated expenses. The proceeds from this offering are earmarked for general corporate purposes. This includes a flexible range of potential uses such as funding ordinary course working capital needs, pursuing strategic acquisitions, retiring existing debt, executing stock repurchase programs, and exploring other general business opportunities. The offering was conducted under Occidental's existing shelf registration statement and was facilitated by a group of underwriters led by Barclays Capital Inc., Citigroup Global Markets Inc., and J.P. Morgan Securities LLC.
Key Highlights
- 1Occidental Petroleum raised a substantial $2.15 billion in aggregate principal amount through a senior notes offering.
- 2The offering comprised $1.25 billion of 1.75% Senior Notes due 2017 and $900 million of 3.125% Senior Notes due 2022.
- 3Net proceeds from the offering are approximately $2.1 billion, after deducting underwriting discounts and expenses.
- 4The funds are designated for general corporate purposes, offering flexibility for strategic initiatives.
- 5Potential uses of proceeds include working capital, acquisitions, debt retirement, and stock repurchases.
- 6The notes were issued under Occidental's Form S-3 automatic shelf registration statement.
- 7The offering was managed by a syndicate of underwriters, including Barclays Capital, Citigroup, and J.P. Morgan.