USA: Apache Sells USD 3 Billion in Bonds

Apache Corporation said that it has priced $3 billion in aggregate principal amount of notes in a public offering consisting of $400 million principal amount of 1.75% notes due in 2017, $1.1 billion principal amount of 3.25% notes due in 2022, and $1.5 billion principal amount of 4.75% notes due in 2043.

Apache intends to use proceeds from the offering to fund the cash portion of the purchase price to be paid to acquire Cordillera Energy Partners III LLC, repayment of Apache’s $400 million in aggregate principal amount of 6.25% notes which mature on April 15, 2012, and for general corporate purposes.

Net proceeds to Apache, after deducting the underwriting discounts and estimated offering expenses payable by Apache, are expected to be approximately $2.96 billion. The offering is expected to close April 9, subject to the satisfaction of customary closing conditions.

The Cordillera transaction is expected to be completed during the second quarter.

[mappress]

LNG World News Staff, April 4, 2012