No. of Recommendations: 6
Thanks guys,

I heard back from Occidental Petroleum in an email. They are just looking to consolidate their bonds, and give the holders that are willing to transfer over a little bonus. The maturity date and the 7.15% payout will stay the same. If all things stay exactly the same with the Oxy bond as far as credit rating, investor confidence, et,...then the Oxy bonds should get priced by the market the same as the Union Pacific bond...at around $122 or so.

I didn't talk about the call provision, but as I understand it, it's a "make whole" call provision. And as I understand "make whole", it means Oxy would have to pay market value to the bond holders if they call them.

I really struggled in the past with the sell or hold question on the bonds:
Its hard to believe that it was about 8 to 10 years ago that we were all buying this stuff up at bargain prices on Zions Direct, and this board was super-active. Seems like just a few months ago.
I for one was not expecting to see the prices climb up so far in just a short time. That left me stumped. Do I sell now and get that great capital gain? Or hold on, getting a great return, but knowing that the prices would come back to earth eventually as we get close to maturity, or interest rates climb again?
I believe "a bird in the hand is worth two in the bush"...meaning I should sell...but I ended up holding on to just about all of them. Lots of them were called.
I've got about 5 issues left in my holdings: These UP bonds, Burlington Northern, Goldman, HSBC, United airlines, and Tennesse valley authority zero's. Most of these are still trading well above par.

Most of my income portfolio in now in ETY, lesser amounts in PCI and IPB. I'll sometimes buy shares of a company and sell call options against it. And I've got a few Bank of America Convertible preferreds, 7 1/2%...series L

Thanx for the info of Finviz. The FINRA site seems to have gotten a little more complicated.

Hope things stablize up in Portland. Hate to see it become a battleground. We stopped over last winter for a night on the way back from a road trip. Went to a small art-theater building, saw a performance of "Its a Wonderful Life", but they did it in a format of putting on a live radio broadcast. It was really good.
Interesting week end coming up. Got asked to ref a high school game (smaller schools here do soccer in the fall) and I love doing it so much, I couldn't say no, even though I doubt my knee will hold up. But the administrator knows that also. Guess they are scraping the bottom of the barrel for opening week end. Well, see how it goes.
Thanx again for the input and info.
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No. of Recommendations: 4
Many railroad were built with large land grants of federal lands. This was to encourage investment in building the railroad. The land was often almost worthless as it was land locked. So railroads did what they could to sell farm and/or ranch lands to settlers. There were big ads, and almost free inspection tours apparently like they sell time shares these days.

In remote areas some railroad lands were forested and some were mineral rich. So railroads created "resource groups" to monetize these assets. Some were eventually sold to corporations. It looks as if your bond is backed by land grant land that was sold eventually to Anandarko, which recently was acquired by Occidental Petroleum.

I read your notice to mean that Union Pacific now is offering voluntary redemption of the bond and paying a premium if you will tender your bonds. But of course you will much prefer to continue collecting your interest payments unless and until they match their market value. (Why do they tender rather than buy them on the open market? Probably to avoid driving up the market price by purchasing same.)
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Thanx Paul. I got a PDF of the offer. My bonds are the ninth one out of the list of 23, if my copy and paste works ok.
Seems like they are offering a lot less than my bonds are now worth (if Etrade has them priced correctly at $122 and change).
I also fired off an email to investor relations at UP and at OXY. I'll call them tomorrow.

I'm also concerned that if don't tender the bonds...that they just don't pull them away from me anyways.



Occidental Petroleum Corporation Commences Offers to Exchange Twenty-of Notes Issued by Anadarko Petroleum Corporation, Anadarko Holding CThormeep aSneyr ies Anadarko Finance Company and Kerr-McGee Corporation for Occidental Notes
HOUSTON — August 15, 2019 — Occidental Petroleum Corporation (“Occidental”)
(NYSE:OXY) the commencement of offers to exchange (the “exchange offers”) any and all
validly tendered (and not validly withdrawn) and accepted notes of the 23 series of notes
described in the below table (collectively, the “Old Notes”) issued by Anadarko Petroleum
Corporation (“Anadarko”), Anadarko Holding Company, as successor in interest to Union Pacific
Resources Group Inc. (“Anadarko HoldCo”), Anadarko Finance Company (“Anadarko Finance”)
or Kerr-McGee Corporation (“Kerr-McGee”), as applicable, for notes to be issued by Occidental
as described in the table below (collectively, the “Oxy Notes”) and cash. A Registration
Statement on Form S-4 relating to the issuance of the Oxy Notes was initially filed with the
Securities and Exchange Commission (“SEC”) on August 1, 2019, as amended by Amendment
No. 1 thereto filed with the SEC on August 13, 2019 (the “Registration Statement”), and was
declared effective on August 15, 2019. Copies of the Prospectus and the Letter of Transmittal
(each as defined below) are available to holders through the information agent, Global
Bondholder Services Corporation, by calling (866) 470-3900 (toll-free) or (212) 430-3774 (for
banks and brokers) or emailing contact@gbsc-usa.com.
2
Aggregate
Principal Amount
Title of Series of
Old Notes Issuer CUSIP/ISIN No.
Title of Series of
Notes to be Issued by
Us (collectively, the
“Oxy Notes”)
Exchange
Consideration(1)(2)
Early
Participation
Premium(1)(2)
Total Consideration(1)(2)(3)
Oxy Notes
(principal
amount) Cash
Oxy Notes
(principal
amount)
Oxy Notes
(principal
amount) Cash
$677,035,000 4.850% Senior
Notes due 2021
Anadarko 032511BM8 /
US032511BM81
4.850% Senior
Notes due 2021
$970 $1.00 $30 $1,000 $1.00
$247,965,000 3.450% Senior
Notes due 2024
Anadarko 032511BJ5 /
US032511BJ52
3.450% Senior
Notes due 2024
$970 $1.00 $30 $1,000 $1.00
$650,000,000 6.950% Senior
Notes due 2024
Kerr-McGee 492386AU1 /
US492386AU15
6.950% Senior
Notes due 2024
$970 $1.00 $30 $1,000 $1.00
$310,000 7.250%
Debentures
due 2025
Anadarko 032511AH0 /
US032511AH06
7.250% Debentures
due 2025
$970 $1.00 $30 $1,000 $1.00
$1,100,000,000 5.550% Senior
Notes due 2026
Anadarko 032511BN6 /
US032511BN64
5.550% Senior
Notes due 2026
$970 $1.00 $30 $1,000 $1.00
$111,856,000 7.500%
Debentures
due 2026
Anadarko
HoldCo
907834AB1 /
US907834AB13
7.500% Debentures
due 2026
$970 $1.00 $30 $1,000 $1.00
$47,750,000 7.000%
Debentures
due 2027
Anadarko 032511AL1 /
US032511AL18
7.000% Debentures
due 2027
$970 $1.00 $30 $1,000 $1.00
$150,000,000 7.125%
Debentures
due 2027
Kerr-McGee 492386AK3 /
US492386AK33
7.125% Debentures
due 2027
$970 $1.00 $30 $1,000 $1.00
$235,133,000 7.150


Debentures
due 2028
Anadarko
HoldCo
907834AG0 /
US907834AG00
7.150% Debentures
due 2028
$970 $1.00 $30 $1,000 $1.00
$14,153,000 6.625%
Debentures
due 2028
Anadarko 032511AM9 /
US032511AM90
6.625% Debentures
due 2028
$970 $1.00 $30 $1,000 $1.00
$135,005,000 7.200%


Debentures
due 2029
Anadarko 032511AN7 /
US032511AN73
7.200% Debentures
due 2029
$970 $1.00 $30 $1,000 $1.00
$116,275,000 7.950%
Debentures
due 2029
Anadarko
HoldCo
907834AJ4 /
US907834AJ49
7.950% Debentures
due 2029
$970 $1.00 $30 $1,000 $1.00
$900,000,000 7.500% Senior
Notes due 2031
Anadarko
Finance
032479AD9 /
US032479AD91
7.500% Senior
Notes due 2031
$970 $1.00 $30 $1,000 $1.00
$500,000,000 7.875% Senior
Notes due 2031
Kerr-McGee 492386AT4 /
US492386AT42
7.875% Senior
Notes due 2031
$970 $1.00 $30 $1,000 $1.00
$1,750,000,000 6.450% Senior
Notes due 2036
Anadarko 032511AY3 /
US032511AY39
6.450% Senior
Notes due 2036
$970 $1.00 $30 $1,000 $1.00
$2,270,600,000(4) Zero Coupon
Senior Notes
due 2036 (the
“Old Zero
Coupon Notes”)
Anadarko 032511BB2 /
US032511BB27
Zero Coupon
Senior Notes
due 2036
$970 $1.00 $30 $1,000 $1.00
3
Aggregate
Principal Amount
Title of Series of
Old Notes Issuer CUSIP/ISIN No.
Title of Series of
Notes to be Issued by
Us (collectively, the
“Oxy Notes”)
Exchange
Consideration(1)(2)
Early
Participation
Premium(1)(2)
Total Consideration(1)(2)(3)
Oxy Notes
(principal
amount) Cash
Oxy Notes
(principal
amount)
Oxy Notes
(principal
amount) Cash
$325,000,000 7.950% Senior
Notes due 2039
Anadarko 032511BG1 /
US032511BG14
7.950% Senior
Notes due 2039
$970 $1.00 $30 $1,000 $1.00
$750,000,000 6.200% Senior
Notes due 2040
Anadarko 032510AC3 /
US032510AC36
6.200% Senior
Notes due 2040
$970 $1.00 $30 $1,000 $1.00
$625,000,000 4.500% Senior
Notes due 2044
Anadarko 032511BK2 /
US032511BK26
4.500% Senior
Notes due 2044
$970 $1.00 $30 $1,000 $1.00
$1,100,000,000 6.600% Senior
Notes due 2046
Anadarko 032511BP1 /
US032511BP13
6.600% Senior
Notes due 2046
$970 $1.00 $30 $1,000 $1.00
$48,800,000 7.250%
Debentures
due 2096
Anadarko 032511AK3 /
US032511AK35
7.250% Debentures
due 2096
$970 $1.00 $30 $1,000 $1.00
$60,500,000 7.730%
Debentures
due 2096
Anadarko 032511AJ6 /
US032511AJ61
7.730% Debentures
due 2096
$970 $1.00 $30 $1,000 $1.00
$77,970,000 7.500%
Debentures
due 2096
Anadarko
HoldCo
907834AC9 /
US907834AC95
7.500% Debentures
due 2096
$970 $1.00 $30 $1,000 $1.00
(1) Consideration per $1,000 principal amount of Old Notes validly tendered and accepted for exchange, subject to any rounding as described herein.
(2) The term “Oxy Notes” in this column refers, in each case, to the series of Oxy Notes corresponding to the series of Old Notes of like tenor and coupon.
(3) Includes the Early Participation Premium (as defined below) for Old Notes validly tendered prior to the Early Participation Date described below and not validly
withdrawn.
(4) Aggregate principal amount at maturity. The accreted amount as of September 18, 2019, the anticipated settlement date of the applicable exchange offer, will be
approximately $413,739.22 per $1,000,000 aggregate principal amount at maturity of Zero Coupon Notes. Except where otherwise indicated, the term “aggregate
principal amount,” when used in reference to the Zero Coupon Notes, refers to the accreted amount as of the anticipated settlement date. In connection with the exchange offers, Occidental is also soliciting consents (the “consent
solicitations”) from holders of the Old Notes (on behalf of the applicable issuer to certain proposed amendments to the corresponding indentures pursuant to o fw thhiec hO sldu cNho tOesld)
eNloimteinsa wtee, rseo liesslyu wedit hw rheiscphe cwti ltlo ( tih) ee 7lim.2i5n0a%te Dseubbestnatnutrieasll yd uaell 2o0f 2t5h,e 7 .r2e5s0tr%ict iDvee bceonvteunreasn dtsu ea n2d0 9(6ii), 7.730% Debentures due 2096, 7.000% Debentures due 2027, 6.625% Debentures due 2028,
37..240500%% SDeenbieonr tNuroetes sd duuee 2 2002294, ,7 5.5.50500%% S Seennioior rN Nootetess d duuee 22003216,, 46..845500%% SSeenniioorr NNootteess dduuee 22003261,,
SOeldn iZoer rNo oCtoeusp doune N 2o0te4s4,, 76.9.65000%% S Seennioior rN oNtoetse ds udeu 2e0 23094, 66.,2 t0h0e% p aSyemnieonr tN cortoesss d-dueef a2u0l4t 0e,v 4e.n5t0s0 %of default in the indentures governing such notes. If the proposed amendments become effective
nwoitth t erensdpeerectd t oin athney saeprpielisc aobf lOe ledx Nchoatensg,e t hoeff earm. Tenhdemreeanfttesr ,w aillll aspupclhy Otol da lNl Ootleds N woitlel bs eo fg souvcehrn seedr ibeys
ahomldeenrdse odf inthdee nOtuldr eNso, twehsi ccho mwpilla hreadve t ofe twhoesr ere csutrrircetnivtely teinr mthse a inndde anfftourrde sr egdouvceerdn inpgro ttheect iOonlds Ntoo tthees
or those applicable to the Oxy Notes. The exchange offers and consent solicitations (together, the “Exchange Offers”)
cSoemptmemenbceer d1 3o, n2 01A9u,g uunslte s1s5 e, x2te0n19d eadn odr teexrpmirinea taetd 1(t2h:0e1 “ Eax.mpi.r,a tNioenw D Yatoer”k) . City time, on
4
In exchange for each $1,000 principal amount of Old Notes that is validly 5:00 p.m., New York City time, on August 28, 2019 (the “Early Participatio tne nDdaetree”d) apnrido rn toot
svaelti doluyt winit hthdera twabnl,e h aobldoevres (othf es u“cTho Otalld C Noontseisd ewriallt iroenc”e)i,v we hthiceh t octoanl seixscths aonfg $e1 c,0o0n0s ipdreinractiipoanl
amount of Oxy Notes and a cash amount of $1.00. No additional payment will be made for a holder’s consent to the proposed amendments
to the indentures governing the Old Notes.
(Tthhee T“Eotaarll yC Ponarstiidceipraattiioonn iPnrcelmudiuems t”h),e w ehairclyh pcaorntisciisptast ioofn $ p3r0e pmriiunmcip saelt aomuto iunn tth oef tOabxlye Nabotoevse.
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ahbooldveer s(t hoef s“uEcxhc hOaldn gNeo Cteosn wsiidll erreacteioivne” )o, nwlyh itchhe iesx ecqhuaanlg teo c tohnes Tidoetaral tCioonn ssiedte oruatti ionn t hlees tsa tbhlee
cEaasrlhy aPmarotuicnipt aotfi o$n1. 0P0re. mFoiur mth ea nadv osiod acnocnes iosft sd oouf b$t9,7 t0h ep r$i1n.c0i0p acla asmh oaumnot uonf tO foxry tNhoe tseesr aiensd o af Old Zero Coupon Notes will be paid based on the aggregate principal amount (or accreted
value) as of the settlement date of such Old Zero Coupon Notes validly tendered.
iEdaecnhti cOaxl yto N tohtee iinstseureeds ti nra etex cahnadn gmea ftourr iatyn oOf ltdh eN oteten dweilrle hda Oveld a Nn ointete, raess tw raetlel aasn did emnatitcuarilt yin tthearet sist payment dates and optional redemption prices (subject to certain technical changes to ensure
trheacet ntht eis scuaalcnuclaet ioofn sse onfio trh neo ttreesa)s. uNroy aractcer uaerde bcuotn usnispteanidt iwntitehr etshte w mille btheo pdasi du soend t hine OOlcdc Nidoetnetsa li’ns
fcroonmn eacntdio nin cwluitdhi nthge t heex cmhoasntg ree coeffnetr sin. tHeroewset vpeary, minetnetr edsat teo no ft hthee a tpepnlidcearbelde OOlxdy NNootete. wSiull bajecccrt uteo the minimum denominations and minimum consideration amounts as described in the
NReotgeisst,r iant iao np Srintactiepmale anmt, othuen tp aritn mciaptaulr aitmy)o wuinllt b oef eroaucnhd Oexdy d Noowtne, ( iof rn, einc ethses acrays, eto o fth thee n Zeearroe sCt owuhpoolen
emxuclhtiapnleg eo f p$r1ic,0e0 0of, asnudc hO Occldid eNnotatel .w iTll hpea yO cxays hN oetqeusa lw tioll tbhee ruenmseacinuirnegd paonrtdio nu,n isf uabnoyr,d ionfa ttheed obligations of Occidental and will rank equally with all other unsecured and unsubordinated
isnudbeobrtdeidnanteesds too f aOll cincdideebntetadln eissssu eadn df rootmhe rt imliaeb iltioti etsim, ien.c lu dTihneg tOraxdye Npoatyeasb lwesil,l obfe O sctcruidcetunrtaall’lsy
current and future subsidiaries. The Oxy Notes will not be entitled to any sinking fund. Questions concerning the terms of the Exchange Offers for the Old Notes should be directed to
the following joint lead dealer managers: BofA Merrill Lynch Citigroup J.P. Morgan Wells Fargo Securities
214 North Tryon Street,
14th Floor
388 Greenwich Street,
7th Floor
383 Madison Avenue 555 South Tryon Street
Charlotte, North Carolina
28255
New York, New York
10013
New York, New York
10179
Charlotte, North Carolina
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P.S.
I'll also dig up the original prospectus for the bond, sounds like you already did that.
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No. of Recommendations: 3
Blacktree,

Bond tenders are a pain in the butt to deal with. Sometimes, it's better to ignore the tender. Sometimes, the prudent response is to accept their offer. It all depends on one's immediate financial needs and one's guess as to where future prices will be. ("Bird in the hand... etc.")

Why does a company want to buy back their debt? Obviously, to lower their operating costs, especially if the coupon is higher than the prevailing cost of money. For years now, I've been massively called, as issuer after issuer has bought back their debt, maybe as much as a third of the several hundred positions I normally carry. Whack, whack, whack. Not good.

OTOH, cash-in-hand is cash that can be redeployed (or parked more safely). Again, it all depends on one's goals with respect to the portfolio (and the size of the position subject to tender, which is often a reason I've accepted part of a tender and reduced my exposure.)

I have no idea what YOU should do about the tender. Were it me, I'd do this. If you trade out of the position at the current bid --not the tender-- and redeploy, can you match the yield at an equivalent risk and/or suffer a reduced yield but at a much lower risk? My guess is likely not, given how overbought the markets are. OTOH, if you believe that the current market will soon blow up far worse than 2007-2008, and if you believe that raising cash would be a prudent thing to do, then take the position flat.

Arindam
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I'm also concerned that if don't tender the bonds...that they just don't pull them away from me anyways.

You should be able to find the call provisions of the bonds somewhere. It should be in the original prospectus for the bonds. And I would think the investor info department of one of those companies would be able to send you a copy.

The language of the tender offer is probably carefully crafted by experts to comply with legal requirements. If the bonds were callable they probably would have been called long ago. Lack of funds or inability to borrow for some reason can be why callable bonds don't always get called.
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No. of Recommendations: 0
FinViz reports the bonds are callable.
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No. of Recommendations: 0
That means if you can find someone willing to pay that 122 quoted value for them, you should sell. Because they are probably callable at close to 100.

Buyer takes the risk they will be called from him at a loss.

There is probably some good reason why they were not called before, but whatever it was, Occidental has resolved the issue and now want to move forward.

But still you wonder why they tendered for them rather than calling them.
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No. of Recommendations: 6
Thanks guys,

I heard back from Occidental Petroleum in an email. They are just looking to consolidate their bonds, and give the holders that are willing to transfer over a little bonus. The maturity date and the 7.15% payout will stay the same. If all things stay exactly the same with the Oxy bond as far as credit rating, investor confidence, et,...then the Oxy bonds should get priced by the market the same as the Union Pacific bond...at around $122 or so.

I didn't talk about the call provision, but as I understand it, it's a "make whole" call provision. And as I understand "make whole", it means Oxy would have to pay market value to the bond holders if they call them.

I really struggled in the past with the sell or hold question on the bonds:
Its hard to believe that it was about 8 to 10 years ago that we were all buying this stuff up at bargain prices on Zions Direct, and this board was super-active. Seems like just a few months ago.
I for one was not expecting to see the prices climb up so far in just a short time. That left me stumped. Do I sell now and get that great capital gain? Or hold on, getting a great return, but knowing that the prices would come back to earth eventually as we get close to maturity, or interest rates climb again?
I believe "a bird in the hand is worth two in the bush"...meaning I should sell...but I ended up holding on to just about all of them. Lots of them were called.
I've got about 5 issues left in my holdings: These UP bonds, Burlington Northern, Goldman, HSBC, United airlines, and Tennesse valley authority zero's. Most of these are still trading well above par.

Most of my income portfolio in now in ETY, lesser amounts in PCI and IPB. I'll sometimes buy shares of a company and sell call options against it. And I've got a few Bank of America Convertible preferreds, 7 1/2%...series L

Thanx for the info of Finviz. The FINRA site seems to have gotten a little more complicated.

Hope things stablize up in Portland. Hate to see it become a battleground. We stopped over last winter for a night on the way back from a road trip. Went to a small art-theater building, saw a performance of "Its a Wonderful Life", but they did it in a format of putting on a live radio broadcast. It was really good.
Interesting week end coming up. Got asked to ref a high school game (smaller schools here do soccer in the fall) and I love doing it so much, I couldn't say no, even though I doubt my knee will hold up. But the administrator knows that also. Guess they are scraping the bottom of the barrel for opening week end. Well, see how it goes.
Thanx again for the input and info.
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