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Bloomberg
Occidental Petroleum Corp sold $2 billion of high-yield bonds to help push out its steep maturity wall.
The company issued unsecured bonds in three parts, including a $500 million five-year bond with a yield of 8%. It also priced a $500 million seven-year note at a yield of 8.5%, and a $1 billion 10-year bond with a yield of 8.875%, according to data compiled by Bloomberg.
The company had garnered around $3 billion of orders for its inaugural junk bond sale, according to people with knowledge of the matter.
Citigroup Inc led the deal.
Representatives for Citigroup and Occidental declined to comment.
Occidental is using proceeds from the sale to buy back as much as $1.5 billion of bonds maturing in 2021 and 2022. The company is seeking to tame its balance sheet after it purchased Anadarko Petroleum Corp last year in a transaction that saddled the company with around $40 billion of debt.
Since then, oil prices have plunged as Covid-19 diminished global demand for the commodity.