How was the Anadarko acquisition financed?

The acquisition was financed through a multi-pronged approach, including a $10 billion investment from Berkshire Hathaway, $8.8 billion from new Term Loan Facilities, and the issuance of $13 billion in senior unsecured notes. The cash portion of the merger consideration was covered by these sources.

What are the terms of the new Term Loan Facilities?

Occidental entered into an $8.8 billion Term Loan Agreement comprising a 364-day senior unsecured term loan facility of $4.4 billion and a two-year senior unsecured term loan facility of $4.4 billion. These loans bear interest based on the Eurodollar Rate or Alternate Base Rate, plus an applicable rate that fluctuates based on Occidental's credit ratings.

What impact does the merger have on Occidental's credit facilities?

The funding of the Term Loan Facilities was contingent on the merger's completion, and they were used to partially finance the acquisition. Additionally, Occidental's Revolving Credit Facility was increased to $5.0 billion from $3.0 billion, also contingent on the merger closing. As of August 8, 2019, there were no outstanding borrowings under the Revolving Credit Facility.

What executive changes occurred as a result of the merger?

Jennifer M. Kirk, previously Vice President, Controller and Principal Accounting Officer, was appointed Senior Vice President, Integration. Christopher O. Champion was appointed Vice President, Chief Accounting Officer and Controller. Mr. Champion received a retention payment and entered into a retention agreement with Occidental.

OXY 8-K: Leadership Changes, Acquisitions & Dispositions & More

Summary

Occidental Petroleum Corporation (OXY) filed an 8-K on August 8, 2019, detailing the completion of its acquisition of Anadarko Petroleum Corporation. This landmark merger, valued at approximately $36.1 billion, was financed through a combination of equity and debt, including a significant $10 billion investment from Berkshire Hathaway, new term loan facilities totaling $8.8 billion, and the issuance of $13 billion in senior unsecured notes. In conjunction with the merger, Occidental also announced the funding of its $8.8 billion Term Loan Facilities and the increase of its Revolving Credit Facility to $5.0 billion. These financial maneuvers were crucial for financing the cash portion of the Anadarko acquisition. The filing also notes changes in key accounting personnel, with Christopher O. Champion appointed as Vice President, Chief Accounting Officer, and Controller, and details his retention agreement.

Key Highlights

1Occidental Petroleum completed its acquisition of Anadarko Petroleum Corporation for approximately $36.1 billion on August 8, 2019.
2The merger was financed through a $10 billion investment from Berkshire Hathaway, $8.8 billion in new term loans, and $13 billion in senior unsecured notes.
3The $8.8 billion Term Loan Facilities were funded on August 8, 2019, to partially finance the merger.
4Occidental's Revolving Credit Facility was increased from $3.0 billion to $5.0 billion, with no borrowings outstanding as of the filing date.
5Anadarko Petroleum Corporation's common stock was delisted from the NYSE.
6Christopher O. Champion was appointed Vice President, Chief Accounting Officer and Controller.
7Occidental established Cumulative Perpetual Preferred Stock, Series A, with a face value of $100,000 per share.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Material Agreement (Aug 8, 2019)

Summary

Key Highlights

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