Summary
Occidental Petroleum Corporation (OXY) filed this Form 8-K on November 7, 2016, to report on a significant debt issuance. The company entered into an Underwriting Agreement on November 2, 2016, to issue and sell $1.5 billion in aggregate principal amount of senior notes. This issuance comprises $750 million of 3.00% senior notes due in 2027 and $750 million of 4.10% senior notes due in 2047. The net proceeds from this offering are estimated to be approximately $1,484 million after deducting underwriting discounts and expenses. OXY intends to use these proceeds for general corporate purposes. The notes were issued under an existing Indenture and a new Officers' Certificate detailing the specific terms of these tranches, which include semi-annual interest payments and covenants limiting liens and sale and leaseback transactions, among other standard provisions. This debt offering diversifies OXY's long-term financing and provides capital for its ongoing operations and potential future investments.
Key Highlights
- 1Occidental Petroleum issued $1.5 billion in aggregate principal amount of senior notes.
- 2The issuance includes two tranches: $750 million of 3.00% senior notes due 2027 and $750 million of 4.10% senior notes due 2047.
- 3Net proceeds from the offering are approximately $1,484 million.
- 4The net proceeds are intended for general corporate purposes.
- 5The notes were issued under an existing indenture and a new officers' certificate.
- 6The offering was conducted under Occidental's automatic shelf registration statement.
- 7Standard covenants regarding liens, sale and leaseback transactions, and mergers are in place.