Summary
Occidental Petroleum Corporation (OXY) announced on June 29, 2021, the commencement of cash tender offers for a substantial portion of its outstanding senior notes. The company is looking to repurchase up to $2.5 billion in aggregate principal amount of its various notes, with a specific sub-cap of $300 million for its 2026-dated notes. This initiative, funded by existing cash on hand, aims to proactively manage its debt obligations and potentially improve its capital structure. In conjunction with these tender offers, Occidental is also soliciting consents from noteholders to amend the indentures governing certain note series. The proposed amendments are primarily aimed at eliminating restrictive covenants. Investors should note the early tender deadline of July 13, 2021, after which an early tender premium will no longer be offered for accepted notes. The overall tender offers are set to expire on July 27, 2021, unless extended or terminated by Occidental.
Key Highlights
- 1Occidental Petroleum has launched cash tender offers to purchase up to $2.5 billion of its outstanding senior notes.
- 2The tender offers include multiple series of notes maturing between 2022 and 2026.
- 3A sub-cap of $300 million applies to the tender offers for the 2026-dated senior notes.
- 4The company intends to fund these repurchases using its existing cash reserves.
- 5Concurrent consent solicitations are seeking to eliminate restrictive covenants in the indentures of certain note series.
- 6An early tender deadline is set for July 13, 2021, offering a premium for notes tendered by this date.
- 7The tender offers are scheduled to expire on July 27, 2021, subject to extension or termination.