Summary
Occidental Petroleum Corporation (OXY) filed an 8-K on December 22, 2020, detailing significant financing activities. The company successfully issued and sold two series of senior unsecured notes, raising an aggregate principal amount of $2 billion. These notes consist of $750 million in 5.50% Senior Notes due 2025 and $1.25 billion in 6.125% Senior Notes due 2031. The net proceeds of approximately $1.985 billion from this offering were primarily used to fund a portion of concurrent tender offers for existing debt and related expenses. In conjunction with these activities, Occidental also announced early tender results for its cash tender offers targeting several series of its outstanding senior notes, including its 2.600% Senior Notes due 2021, and various notes due 2022 and 2023. The aggregate purchase price for these tender offers was increased from $2 billion to $2.3 billion. Furthermore, supplemental indentures were executed to amend the terms of certain existing notes, specifically eliminating certain restrictive covenants for the 2.600% 2021 Notes, 3.125% 2022 Notes, 2.600% 2022 Notes, and 2.700% 2022 Notes.
Key Highlights
- 1Occidental Petroleum raised $2 billion through the issuance of new senior unsecured notes.
- 2The new debt includes $750 million of 5.50% Senior Notes due 2025 and $1.25 billion of 6.125% Senior Notes due 2031.
- 3Net proceeds of approximately $1.985 billion were used to fund tender offers for existing debt and associated costs.
- 4The company increased the maximum aggregate purchase price for its ongoing tender offers from $2 billion to $2.3 billion.
- 5Supplemental indentures were executed to remove certain restrictive covenants for specific series of existing notes (2021 and 2022 maturities).
- 6The issuance was conducted under Occidental's automatic shelf registration statement on Form S-3.
- 7The filing details entry into an Underwriting Agreement and the execution of Supplemental Indentures.