New York Stock Exchange-listed Anadarko Petroleum Corporation on Thursday March 17 announced it has closed its registered public offering of $3 billion aggregate principal amount of senior notes comprised of $800 million 4.85-per cent senior notes due 2021, $1.1 billion 5.55-per cent senior notes due 2026 and $1.1 billion 6.60-per cent senior notes due 2046.
The oil firm, which is one of the partners operating in Ghana’s Jubilee Oil Fields in the Western region, intends to use the net proceeds from the offering, along with cash on hand, to retire its 5.95-per cent senior notes prior to or at maturity in September 2016 and its 6.375-per cent senior notes prior to or at maturity in September 2017.
“We are very pleased the market confirmed we are a solidly investment-grade issuer with significant capital markets access, enabling us to continue to manage through the low commodity price environment without the need to issue equity to achieve our business objectives,” said Bob Gwin, Anadarko’s Executive Vice President, Finance and CFO, in a statement.
“The combination of strategic actions we’ve taken to date, including this offering, reducing the dividend, executing upon our asset monetisations, and driving down expenses, have continued to improve the financial strength of the company, with a clear path to reducing net and gross debt going forward,” Mr Gwin added.
As of year-end 2015, Anadarko had approximately 2.06 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies.