What was the primary purpose of the exchange offers?

The primary purpose of the exchange offers was to simplify and streamline Occidental Petroleum's debt structure following its acquisition of Anadarko Petroleum Corporation. By exchanging the legacy debt of Anadarko and Kerr-McGee for new "Oxy Notes," the company aims to consolidate its liabilities under a unified indenture and simplify management of its debt obligations.

Which debt instruments were not accepted for exchange and why?

The 7.250% Debentures due 2025 and the 7.250% Debentures due 2096, both issued by Anadarko, were not accepted for exchange. This was because Occidental Petroleum did not obtain the necessary consents from bondholders to adopt proposed amendments to the indentures governing these specific notes.

What are the key terms associated with the new "Oxy Notes"?

The new "Oxy Notes" are governed by an indenture dated August 8, 2019. They represent a significant principal amount and have various maturity dates and interest rates. A notable feature is that many of these notes are redeemable at Occidental's option prior to maturity, with redemption prices calculated based on present values discounted to the redemption date plus a specified spread, or at par value on or after certain specified dates (par call feature).

How does this debt exchange impact Occidental Petroleum's financial position?

This debt exchange represents a significant restructuring of Occidental's liabilities post-acquisition. While it consolidates debt under new terms and potentially simplifies future debt management, it also involves the issuance of new debt instruments with specific interest rates and redemption features. Investors should review the terms of the new "Oxy Notes" and the remaining outstanding legacy debt to fully understand the company's updated debt profile and associated financial obligations.

OXY/OXY-WT 8-K: Financial Events

Summary

Occidental Petroleum Corporation (OXY) announced the final results of its previously completed offers to exchange its existing notes (the "Old Notes") for new "Oxy Notes" and cash. This filing details the significant principal amounts of various Anadarko and Kerr-McGee legacy debt instruments that were successfully exchanged. The exchange aimed to streamline OXY's debt structure following its acquisition of Anadarko. While the majority of the Old Notes were exchanged, the company noted that certain series (7.250% Debentures due 2025 and 7.250% Debentures due 2096 issued by Anadarko) were not accepted for exchange due to failure to obtain requisite consents for indenture amendments. The newly issued Oxy Notes are governed by an indenture dated August 8, 2019, and carry various interest rates and maturity dates, with specific redemption provisions detailed. This exchange is a key step in integrating Anadarko's financial obligations into OXY's capital structure.

Key Highlights

1Occidental Petroleum successfully completed exchange offers for a substantial aggregate principal amount of Anadarko and Kerr-McGee legacy notes, issuing new "Oxy Notes" in exchange.
2The exchange involved numerous series of notes with varying interest rates and maturities, ranging from 2021 to 2096.
3Significant principal amounts were exchanged, for example, $1,734,194,000 of 6.450% Senior Notes due 2036 and $2,270,292,000 of Zero Coupon Senior Notes due 2036 from Anadarko were exchanged.
4Two specific series of Anadarko notes (7.250% Debentures due 2025 and 7.250% Debentures due 2096) were not accepted for exchange due to failure to obtain required consent for indenture amendments.
5The newly issued "Oxy Notes" are governed by a new indenture dated August 8, 2019.
6OXY retains the option to redeem most of the newly issued Oxy Notes prior to maturity under specific conditions and at certain redemption prices, including a "par call" option for several series after defined dates.
7The press release dated September 16, 2019, announcing the final results of the exchange offers is also filed as part of this report.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Obligation (Sep 19, 2019)

Summary

Key Highlights

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