Market Overview

Apache announces early tender results and upsizing of cash tender offers for senior notes

Share:

HOUSTON, Aug. 23, 2018 (GLOBE NEWSWIRE) -- Apache Corporation ((NYSE, NASDAQ:APA) today announced the early tender results and an increase in the size of its previously announced cash tender offers (each, an "Offer" and, collectively, the "Offers") to purchase a portion of its outstanding 6.000% notes due 2037 (the "2037 Notes"), 7.95% notes due 2026, 7.70% notes due 2026, 7.625% debentures due 2096, 7.750% notes due 2029, 7.375% debentures due 2047, 7.625% notes due 2019, 2.625% notes due 2023, 3.625% notes due 2021, and 3.250% notes due 2022.  Apache's Offer to Purchase, dated August 9, 2018 (the "Offer to Purchase"), relates to ten separate Offers, one for each series of notes and in the two separate pools indicated in the tables below (each series, a "Series of Notes," and such notes, collectively, the "Notes" and such pools being the "Pool 1" and "Pool 2" indicated in the tables below). The "Aggregate Maximum Purchase Price" of the Offers has been increased to the amount (excluding accrued and unpaid interest and excluding fees and expenses) sufficient to allow the purchase of $378,974,000 aggregate principal amount of Notes representing all of the Notes tendered in Acceptance Priority Levels 1, 2, 3 and 4 in Pool 1 on or before the Early Tender Deadline (as defined below), subject to the Series Maximum for the 2037 Notes in the first table below. Except as described in this press release, the terms and conditions of the Offers set forth in the Offer to Purchase remain unchanged, including the maximum purchase price for the Series of Notes in the Pool 2 Offers.

According to information received from D.F. King & Co., Inc., the Tender Agent and Information Agent for the Offers, as of 5:00 p.m., New York City time, on August 22, 2018 (the "Early Tender Deadline"), Apache had received valid tenders from holders of Notes that were not validly withdrawn as set forth in the tables below under the heading "Principal Amount Tendered."    

  Pool 1: Offers to purchase for cash up to $450,000,000 aggregate purchase price for the securities listed below in the priority listed below.
Notes CUSIP
Numbers
Principal Amount
Outstanding Prior
to the Offers
Series
Maximum
(1)
Principal
Amount
Tendered
Acceptance
Priority
Level
Reference Security Bloomberg
Reference
Page
Fixed
Spread
(bps)
6.000% notes due 2037 037411AR6 $1,000,000,000 $200,000,000 $450,544,000 1 T 3.125% due May 15, 2048 FIT1 170
7.95% notes due 2026 037411AK1 $180,000,000 N/A $46,732,000 2 T 2.875% due May 15, 2028 FIT1 140
7.70% notes due 2026 037411AJ4 $100,000,000 N/A $21,412,000 3 T 2.875% due May 15, 2028 FIT1 140
7.625% debentures due 2096 037411AL9 $150,000,000 N/A $110,830,000 4 T 3.125% due May 15, 2048 FIT1 250
7.750% notes due 2029 03746AAA8 $300,000,000 N/A $74,862,000 5 T 2.875% due May 15, 2028 FIT1 150
7.375% debentures due 2047 037411AM7 $150,000,000 N/A $29,237,000 6 T 3.125% due May 15, 2048 FIT1 185
7.625% notes due 2019 037411AP0 $150,000,000 N/A $41,579,000 7 T 2.625% due July 31, 2020 FIT1 0

Pool 2: Offers to purchase up to $350,000,000 aggregate purchase price for the securities listed below in the priority listed below.
Notes CUSIP
Numbers
Principal Amount
Outstanding Prior
to the Offers
Series
Maximum
(1)
Principal
Amount
Tendered
Acceptance
Priority
Level
Reference Security Bloomberg
Reference
Page
Fixed
Spread
(bps)
2.625% notes due 2023 037411BD6 $528,230,000 $125,000,000 $294,090,000 1 T 2.75% due July 31, 2023 FIT1 60
3.625% notes due 2021 037411AX3 $492,580,000 $100,000,000 $259,200,000 2 T 2.75% due August 15, 2021 FIT1 45
3.250% notes due 2022 037411AZ8 $813,990,000 N/A $598,266,000 3 T 2.75% due July 31, 2023 FIT1 55
  1. The Series Maximum for each Series of Notes represents the maximum aggregate principal amount of Notes of such Series that will be purchased in the applicable Offer.

Subject to the terms and conditions of the Offers, the consideration to be paid in the Offers for each Series of Notes (such consideration, the "Total Consideration") validly tendered on or before the Early Tender Deadline and accepted for purchase by Apache will be determined in the manner described in the Offer to Purchase by reference to the applicable fixed spread for such Series of Notes set forth in the column entitled "Fixed Spread" in the applicable table above, over the applicable yield based on the bid side price of the U.S. Treasury Security set forth for such Series of Notes in the column entitled "Reference Security" in the applicable table above, as calculated by the Dealer Managers (as defined below) at 11:00 a.m., New York City time, on August 23, 2018.  The Total Consideration includes an early tender premium of $30 per $1,000 in aggregate principal amount of Notes accepted for purchase in the Offers (the "Early Tender Premium").  The aggregate purchase price for the Notes accepted for purchase will include accrued and unpaid interest, if any, from the last interest payment date for the applicable Series of Notes up to, but not including, the Early Settlement Date (as defined below).

The settlement date for the Notes validly tendered on or before the Early Tender Deadline and accepted for purchase (the "Early Settlement Date") is expected to be August 24, 2018, the second business day after the Early Tender Deadline.

The deadline for Holders to validly withdraw tenders of Notes has passed. Accordingly, Notes that were tendered at or before the Early Tender Deadline may not be withdrawn or revoked, except as required by applicable law.

Each Offer will expire at 11:59 p.m., New York City time, on September 6, 2018, unless extended or earlier terminated.  However, because the aggregate principal amount of the Notes validly tendered and not validly withdrawn as of the Early Tender Deadline exceeds the Aggregate Maximum Purchase Price as modified hereby, and Apache does not intend to further increase the Aggregate Maximum Purchase Price, no Notes tendered after the Early Tender Deadline will be accepted for purchase in the Offers.

Notes not accepted for purchase will be promptly credited to the account of the registered holder of such Notes with The Depository Trust Company in accordance with the Offer to Purchase.

Apache's obligation to accept for purchase, and to pay for, Notes that are validly tendered and not validly withdrawn pursuant to each Offer is conditioned on the satisfaction or waiver by Apache of a number of conditions as described in the Offer to Purchase, including the receipt by Apache of the net proceeds from the issuance of not less than $800,000,000 in principal amount of indebtedness in one or more debt financing transactions on terms reasonably satisfactory to Apache (the "Financing Condition"). Apache expects the Financing Condition to be satisfied on August 23, 2018 by the closing of its offering of $1,000,000,000 in aggregate principal amount of 4.375% notes due 2028. Apache may amend, extend, or, subject to certain conditions and applicable law, terminate each Offer at any time in its sole discretion.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, and J.P. Morgan Securities LLC are acting as Dealer Managers (the "Dealer Managers") and D. F. King & Co., Inc. is acting as the Tender Agent and Information Agent for the Offers. Requests for documents may be directed to D.F. King & Co., Inc. at (800) 967-4607. Questions regarding the Offers may be directed to BofA Merrill Lynch at (888) 292-0070 (toll free) or (980) 387-3907 (collect); Credit Suisse Securities (USA) LLC at (800) 820-1653 (toll free) or (212) 538-1862 (collect) and J.P. Morgan Securities LLC at (866) 834-4666 (toll free) or (212) 834-3424 (collect).

This announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to any securities, including in connection with the Financing Condition. The Offers to purchase the Notes are only being made pursuant to the terms of the Offer to Purchase. The Offers are not being made in any state or jurisdiction in which such Offers would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of Apache, the Dealer Managers, or the Tender Agent and Information Agent is making any recommendation as to whether or not Holders should tender their Notes in connection with the Offers.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google Play store.

Cautionary Statements and Risk Factors That May Affect Future Results

Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking statements are not guarantees of performance. Actual events or results may differ materially because of conditions in our markets or other factors. Moreover, Apache does not, nor does any other person, assume responsibility for the accuracy and completeness of those statements. Unless otherwise required by applicable securities laws, Apache disclaims any intention or obligation to update any of the forward-looking statements after the date of this prospectus supplement. If Apache does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under "Risk Factors" in the Offer to Purchase and under "Forward-Looking Statements and Risk" and "Risk Factors" in Apache's Annual Report on Form 10-K for the year ended December 31, 2017 (which is incorporated by reference in the Offer to Purchase) and similar sections in any subsequent filings, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements.

Those risk factors may not be exhaustive. Apache operates in a continually changing business environment, and new risk factors emerge from time to time. Apache cannot predict these new risk factors or assess the impact, if any, of these new risk factors on Apache's businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those described in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results.

Contacts    
     
Investor: (281) 302-2286 Gary Clark
     
Media: (713) 296-7276 Castlen Kennedy
     
  (713) 296-6223 Phil West
     
Website: www.apachecorp.com

APA-F

Primary Logo

View Comments and Join the Discussion!