Last week, Moody's Investors Service announced that it completed its credit review and confirmed Calgary-based Nexen Inc.'s Baa3 rating, with a negative outlook based on achieving certain debt levels within the next year. The company indicated it could meet these levels by reducing its debt by approximately US$1.5 billion. Nexen is announcing actions to reduce up to US$1 billion of its debt from cash on hand.
In connection with this, the company intends to issue a notice of redemption, before the end of March, for all US$500 million of its 5.05% senior notes due in 2013.
Nexen also plans to offer to purchase up to US$500 million principal amount of its senior notes through both an Any and All Tender Offer and a Maximum Tender Offer pursuant to an Offer to Purchase dated today which sets forth the terms, conditions and limitations of these offers.
In the Any and All Tender Offer, the company is offering to purchase any and all of its 5.20% senior notes due in 2015 and its 5.65% senior notes due in 2017, each in the amount of US$250 million.
In the Maximum Tender Offer, it is offering to purchase up to US$250 million principal amount, less the principal amount of notes purchased in the Any and All Tender Offer, of its 6.20% senior notes due in 2019 and its 7.40% senior notes due in 2028 in the order of priority specified in the Offer to Purchase. If the principal amount of the notes accepted for purchase in the Any and All Tender Offer equals or exceeds US$250 million, the Maximum Tender Offer will be terminated and no Maximum Tender Offer notes will be accepted for purchase.
The Any and All Tender Offer is scheduled to expire by March 24. The Maximum Tender Offer is scheduled to expire by April 13.
Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are dealer managers, and D.F. King & Co., Inc. is the depositary and information agent.
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