Summary
Occidental Petroleum Corporation (OXY) announced on August 8, 2019, through an 8-K filing, the successful issuance and sale of $13 billion in aggregate principal amount of senior unsecured notes. This significant debt offering was conducted via an Underwriting Agreement with several major financial institutions and was made pursuant to an automatic shelf registration statement. The primary purpose of this substantial debt issuance was to finance, in part, Occidental's recently completed merger with Anadarko Petroleum Corporation and cover related transaction costs. The net proceeds amounted to approximately $12.9 billion after deducting underwriting fees and expenses. This move signals a major financing event for OXY, underscoring the scale of the Anadarko acquisition.
Key Highlights
- 1Occidental Petroleum issued $13 billion in senior unsecured notes on August 8, 2019.
- 2The debt offering consisted of ten different series of notes, including both floating rate and fixed rate notes with maturities ranging from 2021 to 2049.
- 3Proceeds from the note issuance were approximately $12.9 billion, after fees and expenses.
- 4The funds raised are intended to partially finance the acquisition of Anadarko Petroleum Corporation.
- 5The offering was made under Occidental's automatic shelf registration statement on Form S-3.
- 6The notes were issued pursuant to an Indenture and supplemented by an Officer's Certificate detailing specific terms.
- 7The Indenture includes covenants that may restrict Occidental's ability to incur liens and merge or transfer assets.