Occidental Petroleum Corp Announces $700M Cash Offer for Senior Notes and Debentures

By Chris Stiles • Thursday, February 19 15:40 • Permanent Link

Occidental (NYSE: OXY) has announced its commencement of offers to purchase for cash its outstanding senior notes and debentures and consent solicitations with respect to certain series of such senior notes and debentures. The company is offering to purchase for cash, subject to the order of priority, up to $700.0 million aggregate principal amount of its zero coupon senior notes due 2036, 6.125% senior notes due 2031, 6.625% senior notes due 2030, 7.200% debentures due 2029, and 7.950% debentures due 2029.

The aggregate principal amount outstanding for the zero coupon senior notes due 2036 is $284,540,000, for the 6.125% senior notes due 2031 is $1,142,749,000, for the 6.625% senior notes due 2030 is $1,449,459,000, for the 7.200% debentures due 2029 is $126,005,000, and for the 7.950% debentures due 2029 is $80,881,000.

The early tender premium for each series of notes ranges from $30 to $58,000,000, and the fixed spread ranges from +50 to +65 basis points.

The tender offers and consent solicitations will expire at 5:00 p.m., New York City time, on March 19, 2026, unless extended or earlier terminated by Occidental. The total consideration for each $1,000 principal amount of notes validly tendered at or prior to the early tender time and accepted for purchase will be determined based on the bid-side price of the reference treasury security at 10:00 a.m., New York City time, on March 5, 2026.

The tender offers are not conditioned on the tender of any minimum principal amount of notes, the consummation of any other tender offer, or obtaining any requisite consent.

Citigroup Global Markets Inc. is the sole lead dealer manager in connection with the tender offers and the sole lead solicitation agent in connection with the consent solicitations, with other co-managers and a tender agent and information agent involved.

Occidental is an international energy company headquartered in Houston, primarily operating in the United States, the Middle East, and North Africa. The market has reacted to these announcements by moving the company's shares -1.09% to a price of $42.70. For more information, read the company's full 8-K submission here.

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