Occidental Petroleum Corporation (“Occidental”) (NYSE: OXY) today announced the
commencement of offers to exchange (the “exchange offers”) any and all validly tendered
(and not validly withdrawn) and accepted notes of the 23 series of
notes described in the below table (collectively, the “Old Notes”) issued by Anadarko Petroleum
Corporation (“Anadarko”), Anadarko
Holding Company, as successor in interest to Union Pacific
Resources Group Inc. (“Anadarko
HoldCo”), Anadarko Finance Company (“Anadarko Finance”) or Kerr-McGee Corporation
(“Kerr-McGee”), as applicable, for
notes to be issued by Occidental as described in the table below
(collectively, the “Oxy Notes”) and
cash. A Registration Statement on Form S-4 relating to the issuance
of the Oxy Notes was initially filed with the Securities and
Exchange Commission (“SEC”) on August
1, 2019, as amended by Amendment No. 1 thereto filed with the SEC
on August 13, 2019 (the “Registration
Statement”), and was declared effective on August 15, 2019.
Copies of the Prospectus and the Letter of Transmittal (each as
defined below) are available to holders through the information
agent, Global Bondholder Services Corporation, by calling (866)
470-3900 (toll-free) or (212) 430-3774 (for banks and brokers) or
emailing contact@gbsc-usa.com.
Aggregate Principal
Amount
Title of Series of Old
Notes
Issuer
CUSIP/ISIN No.
Title of Series of Notes to be
Issued by Us (collectively, the “Oxy Notes”)
Exchange
Consideration(1)(2)
Early Participation
Premium(1)(2)
Total
Consideration(1)(2)(3)
Oxy Notes (principal
amount)
Cash
Oxy Notes (principal
amount)
Oxy Notes (principal
amount)
Cash
$677,035,000
4.850% Senior Notes due 2021
Anadarko
032511BM8 / US032511BM81
4.850% Senior Notes due 2021
$970
$1.00
$30
$1,000
$1.00
$247,965,000
3.450% Senior Notes due 2024
Anadarko
032511BJ5 / US032511BJ52
3.450% Senior Notes due 2024
$970
$1.00
$30
$1,000
$1.00
$650,000,000
6.950% Senior Notes due 2024
Kerr-McGee
492386AU1 / US492386AU15
6.950% Senior Notes due 2024
$970
$1.00
$30
$1,000
$1.00
$310,000
7.250% Debentures due 2025
Anadarko
032511AH0 / US032511AH06
7.250% Debentures due 2025
$970
$1.00
$30
$1,000
$1.00
$1,100,000,000
5.550% Senior Notes due 2026
Anadarko
032511BN6 / US032511BN64
5.550% Senior Notes due 2026
$970
$1.00
$30
$1,000
$1.00
$111,856,000
7.500% Debentures due 2026
Anadarko HoldCo
907834AB1 / US907834AB13
7.500% Debentures due 2026
$970
$1.00
$30
$1,000
$1.00
$47,750,000
7.000% Debentures due 2027
Anadarko
032511AL1 / US032511AL18
7.000% Debentures due 2027
$970
$1.00
$30
$1,000
$1.00
$150,000,000
7.125% Debentures due 2027
Kerr-McGee
492386AK3 / US492386AK33
7.125% Debentures due 2027
$970
$1.00
$30
$1,000
$1.00
$235,133,000
7.150% Debentures due 2028
Anadarko HoldCo
907834AG0 / US907834AG00
7.150% Debentures due 2028
$970
$1.00
$30
$1,000
$1.00
$14,153,000
6.625% Debentures due 2028
Anadarko
032511AM9 / US032511AM90
6.625% Debentures due 2028
$970
$1.00
$30
$1,000
$1.00
$135,005,000
7.200% Debentures due 2029
Anadarko
032511AN7 / US032511AN73
7.200% Debentures due 2029
$970
$1.00
$30
$1,000
$1.00
$116,275,000
7.950% Debentures due 2029
Anadarko HoldCo
907834AJ4 / US907834AJ49
7.950% Debentures due 2029
$970
$1.00
$30
$1,000
$1.00
$900,000,000
7.500% Senior Notes due 2031
Anadarko Finance
032479AD9 / US032479AD91
7.500% Senior Notes due 2031
$970
$1.00
$30
$1,000
$1.00
$500,000,000
7.875% Senior Notes due 2031
Kerr-McGee
492386AT4 / US492386AT42
7.875% Senior Notes due 2031
$970
$1.00
$30
$1,000
$1.00
$1,750,000,000
6.450% Senior Notes due 2036
Anadarko
032511AY3 / US032511AY39
6.450% Senior Notes due 2036
$970
$1.00
$30
$1,000
$1.00
$2,270,600,000(4)
Zero Coupon Senior Notes due 2036
(the “Old Zero Coupon Notes”)
Anadarko
032511BB2 / US032511BB27
Zero Coupon Senior Notes due
2036
$970
$1.00
$30
$1,000
$1.00
$325,000,000
7.950% Senior Notes due 2039
Anadarko
032511BG1 / US032511BG14
7.950% Senior Notes due 2039
$970
$1.00
$30
$1,000
$1.00
$750,000,000
6.200% Senior Notes due 2040
Anadarko
032510AC3 / US032510AC36
6.200% Senior Notes due 2040
$970
$1.00
$30
$1,000
$1.00
$625,000,000
4.500% Senior Notes due 2044
Anadarko
032511BK2 / US032511BK26
4.500% Senior Notes due 2044
$970
$1.00
$30
$1,000
$1.00
$1,100,000,000
6.600% Senior Notes due 2046
Anadarko
032511BP1 / US032511BP13
6.600% Senior Notes due 2046
$970
$1.00
$30
$1,000
$1.00
$48,800,000
7.250% Debentures due 2096
Anadarko
032511AK3 / US032511AK35
7.250% Debentures due 2096
$970
$1.00
$30
$1,000
$1.00
$60,500,000
7.730% Debentures due 2096
Anadarko
032511AJ6 / US032511AJ61
7.730% Debentures due 2096
$970
$1.00
$30
$1,000
$1.00
$77,970,000
7.500% Debentures due 2096
Anadarko HoldCo
907834AC9 / US907834AC95
7.500% Debentures due 2096
$970
$1.00
$30
$1,000
$1.00
- Consideration per $1,000 principal amount of Old Notes validly
tendered and accepted for exchange, subject to any rounding as
described herein.
- The term “Oxy Notes” in this column refers, in each case, to
the series of Oxy Notes corresponding to the series of Old Notes of
like tenor and coupon.
- Includes the Early Participation Premium (as defined below) for
Old Notes validly tendered prior to the Early Participation Date
described below and not validly withdrawn.
- Aggregate principal amount at maturity. The accreted amount as
of September 18, 2019, the anticipated settlement date of the
applicable exchange offer, will be approximately $413,739.22 per
$1,000,000 aggregate principal amount at maturity of Zero Coupon
Notes. Except where otherwise indicated, the term “aggregate
principal amount,” when used in reference to the Zero Coupon Notes,
refers to the accreted amount as of the anticipated settlement
date.
In connection with the exchange offers, Occidental is also
soliciting consents (the “consent
solicitations”) from holders of the Old Notes (on behalf of
the applicable issuer of the Old Notes) to certain proposed
amendments to the corresponding indentures pursuant to which such
Old Notes were issued which will (i) eliminate substantially all of
the restrictive covenants and (ii) eliminate, solely with respect
to the 7.250% Debentures due 2025, 7.250% Debentures due 2096,
7.730% Debentures due 2096, 7.000% Debentures due 2027, 6.625%
Debentures due 2028, 7.200% Debentures due 2029, 7.500% Senior
Notes due 2031, 4.850% Senior Notes due 2021, 3.450% Senior Notes
due 2024, 5.550% Senior Notes due 2026, 6.450% Senior Notes due
2036, Old Zero Coupon Notes, 7.950% Senior Notes due 2039, 6.200%
Senior Notes due 2040, 4.500% Senior Notes due 2044, 6.600% Senior
Notes due 2046, the payment cross-default events of default in the
indentures governing such notes. If the proposed amendments become
effective with respect to any series of Old Notes, the amendments
will apply to all Old Notes of such series not tendered in the
applicable exchange offer. Thereafter, all such Old Notes will be
governed by amended indentures, which will have fewer restrictive
terms and afford reduced protections to the holders of the Old
Notes compared to those currently in the indentures governing the
Old Notes or those applicable to the Oxy Notes.
The exchange offers and consent solicitations (together, the
“Exchange Offers”) commenced on August
15, 2019 and expire at 12:01 a.m., New York City time, on September
13, 2019, unless extended or terminated (the “Expiration Date”).
In exchange for each $1,000 principal amount of Old Notes
that is validly tendered prior to 5:00 p.m., New York City time, on
August 28, 2019 (the “Early Participation
Date”) and not validly withdrawn, holders of such Old Notes
will receive the total exchange consideration set out in the table
above (the “Total Consideration”),
which consists of $1,000 principal amount of Oxy Notes and a cash
amount of $1.00.
No additional payment will be made for a holder’s consent to
the proposed amendments to the indentures governing the Old
Notes.
The Total Consideration includes the early participation
premium set out in the table above (the “Early Participation Premium”), which consists of
$30 principal amount of Oxy Notes.
In exchange for each $1,000 principal amount of Old Notes
that is validly tendered after the Early Participation Date but
prior to the Expiration Date and not validly withdrawn, holders of
such Old Notes will receive only the exchange consideration set out
in the table above (the “Exchange
Consideration”), which is equal to the Total Consideration
less the Early Participation Premium and so consists of $970
principal amount of Oxy Notes and a cash amount of $1.00. For the
avoidance of doubt, the $1.00 cash amount for the series of Old
Zero Coupon Notes will be paid based on the aggregate principal
amount (or accreted value) as of the settlement date of such Old
Zero Coupon Notes validly tendered.
Each Oxy Note issued in exchange for an Old Note will have an
interest rate and maturity that is identical to the interest rate
and maturity of the tendered Old Note, as well as identical
interest payment dates and optional redemption prices (subject to
certain technical changes to ensure that the calculations of the
treasury rate are consistent with the methods used in Occidental’s
recent issuance of senior notes). No accrued but unpaid interest
will be paid on the Old Notes in connection with the exchange
offers. However, interest on the applicable Oxy Note will accrue
from and including the most recent interest payment date of the
tendered Old Note. Subject to the minimum denominations and minimum
consideration amounts as described in the Registration Statement,
the principal amount of each Oxy Note (or, in the case of the Zero
Coupon Notes, in a principal amount at maturity) will be rounded
down, if necessary, to the nearest whole multiple of $1,000, and
Occidental will pay cash equal to the remaining portion, if any, of
the exchange price of such Old Note. The Oxy Notes will be
unsecured and unsubordinated obligations of Occidental and will
rank equally with all other unsecured and unsubordinated
indebtedness of Occidental issued from time to time. The Oxy Notes
will be structurally subordinated to all indebtedness and other
liabilities, including trade payables, of Occidental’s current and
future subsidiaries. The Oxy Notes will not be entitled to any
sinking fund.
Questions concerning the terms of the Exchange Offers for the
Old Notes should be directed to the following joint lead dealer
managers:
BofA Merrill Lynch
Citigroup
J.P. Morgan
Wells Fargo Securities
214 North Tryon Street, 14th
Floor
388 Greenwich Street, 7th
Floor
383 Madison Avenue
555 South Tryon Street
Charlotte, North Carolina
28255
New York, New York 10013
New York, New York 10179
Charlotte, North Carolina
28202
Attention: Liability Management
Group
Attention: Liability Management
Group
Attention: Liability Management
Group
Attention: Liability Management
Group
Collect: (980) 683-3215
Collect: (212) 723-6106
Collect: (212) 834-3424
Collect: (704) 410-4756
Toll-Free: (888) 292-0070
Toll-Free: (800) 558-3745
Toll-Free: (866) 834-4666
Toll-Free: (866) 309-6316
Questions concerning tender procedures for the Old Notes and
requests for additional copies of the Prospectus and the Letter of
Transmittal should be directed to the following exchange agent and
information agent:
Global Bondholder Services
Corporation
By Facsimile (Eligible
Institutions Only):
(212) 430-3775
By E-Mail:
contact@gbsc-usa.com
By Mail or Hand:
65 Broadway—Suite 404
New York, New York 10006
Banks and Brokers (Collect):
(212) 430-3774
All Others (Toll Free):
(866) 470-3900
The Exchange Offers are being made pursuant to the terms and
conditions set forth in Occidental’s prospectus, dated as of August
15, 2019 (the “Prospectus”), which
forms a part of the Registration Statement, and the related Letter
of Transmittal and Consent (the “Letter of
Transmittal”). Tenders of Old Notes in connection with any
of the Exchange Offers may be withdrawn at any time prior to the
Expiration Date of the applicable Exchange Offer. Following the
Expiration Date, tenders of Old Notes may not be validly withdrawn
unless Occidental is otherwise required by law to permit
withdrawal. Consents to the proposed amendments may be revoked at
any time prior to 5:00 p.m., New York City time, on August 28,
2019, unless extended by Occidental (such date and time, as it may
be extended, the “Consent Revocation
Deadline”), but may not be revoked at any time thereafter.
Consents may be revoked only by validly withdrawing the associated
tendered Old Notes. A valid withdrawal of tendered Old Notes prior
to the Consent Revocation Deadline will be deemed to be a
concurrent revocation of the related consent to the proposed
amendments to the applicable indentures governing the Old Notes,
and a revocation of a consent to the proposed amendments prior to
the Consent Revocation Deadline will be deemed to be a concurrent
withdrawal of the related tendered Old Notes. However, a valid
withdrawal of Old Notes after the Consent Revocation Deadline will
not be deemed a revocation of the related consents and the consents
will continue to be deemed delivered. Occidental may terminate or
withdraw the Exchange Offers at any time for any reason.
This press release is not an offer to sell or a solicitation of
an offer to buy any of the securities described herein and is also
not a solicitation of the related consents. The Exchange Offers may
be made solely pursuant to the terms and conditions of the
Prospectus, the Letter of Transmittal and the other related
materials. The Exchange Offers are not being made in any state or
jurisdiction in which such offers would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
In order to participate in any exchange offer and consent
solicitation for Old Notes, holders of the Old Notes resident in
Canada are required to complete, sign and submit to the exchange
agent a Canadian Eligibility Form (attached as Annex A to the
Letter of Transmittal).
Any holder of the Old Notes located in any Member State of the
EEA that is a retail investor will not be able to participate in
the Exchange Offers. For these purposes, a retail investor means a
person who is one or more of the following: (i) a retail client as
defined in point (ii) of Article 4(1) Directive (EU) 2014/65/EU (as
amended, “MiFID II”), (ii) a customer
within the meaning of Directive (EU) 2016/97 (as amended, the
“Insurance Distribution Directive”),
where that customer would not qualify as a professional client as
defined in point (10) of Article 4(1) of MiFID II or (iii) a person
that is not a qualified investor as defined in the Prospectus
Directive.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements within
the meaning of the federal securities laws, including Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In this context,
forward-looking statements often address expected future business
and financial performance and financial condition, and often
contain words such as “expect”, “anticipate”, “intend”, “plan”,
“believe”, “seek”, “see”, “will”, “would”, “target”, similar
expressions, and variations or negatives of these words.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as the expected timing
of completion of the Exchange Offers. These and other
forward-looking statements are not guarantees of future results and
are subject to risks, uncertainties and assumptions that could
cause actual results to differ materially from those expressed in
any forward-looking statements, including the failure make any
filing or take other action required to consummate such transaction
in a timely matter or at all.
Factors that could cause actual results to differ and that may
affect Occidental’s results of operations and financial position
appear in Part I, Item 1A “Risk Factors” of Occidental’s Annual
Report on Form 10-K for the year ended December 31, 2018, and in
Occidental’s other filings with the SEC. Additional factors related
to the Exchange Offers appear in the Registration Statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190815005399/en/
Media: Melissa E. Schoeb Vice President, Corporate
Affairs 713-366-5615
Investors: Jeff Alvarez Vice President, Investor
Relations 713-215-7864
Occidental Petroleum (NYSE:OXY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Occidental Petroleum (NYSE:OXY)
Historical Stock Chart
From Apr 2023 to Apr 2024