Summary
Occidental Petroleum (OXY) announced actions on September 15 and 17, 2020, primarily focused on debt management and shareholder returns. The company received notice of approximately $2.0 million in principal amount of its Zero Coupon Senior Notes due 2036 being put back to the company for payment in October 2020. Importantly, OXY will utilize the majority of the remaining net proceeds from its August 2020 senior unsecured notes issuance, approximately $865 million, to fully repay its floating rate notes due August 2021 and reduce its variable rate Term Loan due August 2021. This move demonstrates a commitment to deleveraging and improving its balance sheet, particularly by addressing near-term debt maturities.
Key Highlights
- 1Occidental Petroleum will use approximately $865 million of net proceeds from its August 2020 senior notes issuance to repay floating rate notes due August 2021 and reduce its variable rate Term Loan due August 2021.
- 2Approximately $2.0 million in principal amount of Zero Coupon Senior Notes due 2036 were put to the company for payment in October 2020.
- 3The company is actively managing its debt obligations, prioritizing repayment of near-term maturities.
- 4This debt reduction strategy aims to strengthen Occidental's financial position and reduce interest expense.
- 5The Board of Directors declared a quarterly dividend on its Cumulative Perpetual Preferred Stock, Series A.
Frequently Asked Questions
Repaying these notes and term loan demonstrates Occidental's commitment to strengthening its balance sheet by reducing debt and managing near-term maturities. This deleveraging strategy can improve financial flexibility and potentially lower future interest expenses.
The company is using approximately $865 million of the remaining net proceeds from its August 2020 senior unsecured notes issuance to address these debt obligations.
Approximately $2.0 million in principal amount of Zero Coupon Senior Notes due 2036 were put to the company. This represents a relatively small portion of the company's overall debt structure and will be paid in October 2020 at their accreted value.
This filing only mentions a dividend declaration for the Series A Preferred Stock. There is no information in this specific 8-K regarding a dividend on the common stock.