Summary
Occidental Petroleum Corporation (OXY) announced on April 4, 2016, the completion of a significant public offering of senior notes totaling $2.75 billion. This offering was split into three tranches: $400 million in 2.600% notes due 2022, $1.15 billion in 3.400% notes due 2026, and $1.2 billion in 4.400% notes due 2046. These notes were issued under an existing indenture and were sold pursuant to an automatic shelf registration statement. The company has also noted that certain underwriters and their affiliates may have engaged in prior or future commercial and investment banking transactions with Occidental, and some may even own existing OXY debt, potentially benefiting from the offering proceeds. This debt issuance indicates Occidental's strategy to manage its capital structure and fund its ongoing operations or strategic initiatives.
Key Highlights
- 1Occidental Petroleum completed a public offering of $2.75 billion in senior notes on April 4, 2016.
- 2The offering consists of three series: $400 million of 2.600% notes due 2022, $1.15 billion of 3.400% notes due 2026, and $1.2 billion of 4.400% notes due 2046.
- 3The notes were issued under an existing Indenture dated August 18, 2011, and supplemented by an Officers' Certificate dated April 4, 2016.
- 4Interest on the notes will be paid semi-annually in arrears.
- 5The Indenture includes covenants restricting Occidental's ability to create liens, enter into sale and leaseback transactions, and merge or transfer substantially all assets.
- 6Occidental has the option to redeem the notes at specified prices.
- 7The offering was conducted under Occidental's automatic shelf registration statement on Form S-3.