Anadarko Petroleum Corporation (APC) initiated a cash tender offer to buyback $1 billion of its outstanding debt. The tender offer consists of two separate offers: an Any and All Offer and a Maximum Tender Offer.
The first offer seeks to purchase any and all of the 6.750% Senior Notes due May 2011, originally issued by Anadarko Finance Company, a wholly-owned subsidiary.
Under the terms of the second offer, Anadarko will purchase the 6.875% notes, the 6.125% notes and the 5% notes, due September 2011, March 2012 and October 2012, respectively. The 6.875% notes are issued by subsidiary, Kerr-McGee Corporation and the 6.125% and 5.0% notes are issued by Anadarko. The offer is scheduled to expire April 6.
Separately, Anadarko priced its registered public offering of $750 million 6.200% notes due 2040. Anadarko expects to close the offering on March 16, 2010 and intends to use the net proceeds from the offering to fund a portion of the purchase price for its cash tender offer for the Any and All Offer and its partial cash tender offer for the Maximum Tender Offer.
Anadarko, based in The Woodlands, Texas, is one of the largest independent oil and natural gas exploration and production (E&P) companies in the world. It is primarily engaged in the exploration, development, production, gathering, processing and marketing of natural gas, crude oil, condensate and natural gas liquids (NGLs).
Anadarko’s deep and diversified asset base, low-risk and predictable production profile, global business development approach and brilliant execution capability reflects a visible upside over medium-to-long run.
Anadarko has shown admirable financial discipline by prudently managing its balance sheet. Going forward, we believe Anadarko’s strong balance sheet, investment-grade rating and access to liquidity will enable the company to pursue new strategic and tactical growth opportunities, particularly at a time when valuations are depressed.
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