Occidental Petroleum sold $13 billion of debt to help finance its acquisition of Anadarko Petroleum Corp. after receiving over $75 billion in orders for the deal at the peak, people familiar with the matter told Bloomberg.
It was the biggest demand for a debt sale since Saudi Arabia’s Saudi Aramco received more than $100 billion in orders in April, Kallanish Energy reports.
Occidental issued bonds to fund the $38 billion ($55 billion with debt) takeover in 10 parts, according to Bloomberg. The longest portion of the offering, a 30-year security, yields 2.25 percentage points more than U.S. Treasuries, down from initial price talk of 2.7 percentage points, a person familiar with the sale told Bloomberg.
The order book for Occidental’s offering grew to above $75 billion before falling to roughly $71 billion as the deal launched, according to the people familiar with the demand.
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