Investors Flock To Occidental’s $13 Billion Debt Offering
Underwriters of Occidental Petroleum’s offering priced the $13 billion in debt at a lower yield than anticipated.
Richard Henderson, Financial Times
Proceeds from the deal will be used to finance Occidental Petroleum’s $57 billion (including debt) takeover of Anadarko Petroleum. (Source: Casimiro PT/Shutterstock.com)
Occidental Petroleum Corp. issued $13 billion in bonds on Aug. 6 to fund its takeover of Anadarko Petroleum Corp., an acquisition that has pitted famed investors Warren Buffett and Carl Icahn against one another.
Orders for the 10-part bond sale swelled to $78 billion by midday on Aug. 6 in New York, according to two people briefed on the matter, allowing underwriters to lower the yield on the offering compared with the initial guidance released earlier in the day.
The strong appetite underscored investors’ renewed interest in corporate debt amid a global bond rally that has pushed yields for government bonds sharply lower.