Summary
Occidental Petroleum Corporation (OXY) announced the successful completion of a significant debt offering on August 26, 2020. The company issued and sold three series of senior unsecured notes totaling $3 billion, comprising $900 million of 5.875% notes due 2025, $600 million of 6.375% notes due 2028, and $1.5 billion of 6.625% notes due 2030. The net proceeds from this offering, approximately $2.972 billion after deducting discounts and expenses, are earmarked for funding concurrent tender offers and associated fees. This move indicates Occidental's proactive management of its capital structure and its efforts to address upcoming financial obligations, potentially related to its prior acquisitions.
Key Highlights
- 1Occidental Petroleum raised $3 billion through the issuance of senior unsecured notes.
- 2The offering consisted of three tranches with maturities in 2025, 2028, and 2030, carrying coupon rates of 5.875%, 6.375%, and 6.625% respectively.
- 3Net proceeds of approximately $2.972 billion will be used to fund concurrent tender offers.
- 4The notes were issued under Occidental's existing shelf registration statement.
- 5The Indenture governing the notes includes covenants that restrict Occidental's ability to incur liens and merge or transfer substantially all of its assets.
- 6Occidental retains the option to redeem the notes prior to maturity under certain conditions.