(Editors at Energy Analytics Institute, 7.Jan.2025) — APA Corporation announced plans to offer a series of senior notes due 2035 and a series of senior notes due 2055 in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended.
Net proceeds from the proposed offering will be destined to purchase certain outstanding senior indebtedness issued by APA’s wholly-owned subsidiary Apache Corporation in cash tender offers with respect to several series of its outstanding notes, which commenced on 3 Dec. 2024, with a maximum aggregate purchase price of $869mn (including accrued and unpaid interest).
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Any remaining net proceeds will be destined for general corporate purposes, which may include further purchases of Apache’s outstanding notes, the company said 7 Jan. 2025 in an official statement.
The settlement date of the tender offers and the concurrent offers to exchange certain outstanding senior indebtedness issued by Apache for new notes to be issued by APA is expected to be 10 Jan. 2025, according to APA.
“The notes will be initially guaranteed by Apache, until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than $1bn, provided that if the aggregate principal amount of such indebtedness is less than $1bn as of the tender settlement date, then the reason for such guarantees would have ceased to exist and no guarantees would be issued with respect to the notes,” APA said in the statement.
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