Occidental Offers Benchmark Bonds in First Issue This Year

Occidental Petroleum Corp. (OXY), the largest onshore crude producer in the continental U.S., is offering debt in its first sale this year.

The company, which also markets natural gas and chemicals, may issue 5.5- year notes to yield about 85 basis points more than similar-maturity Treasuries and 10.5-year bonds at a spread of about 115 basis points, according to a person familiar with the transaction. The offering will be of benchmark size, typically at least $500 million.

Occidental last issued bonds in August 2011, selling $1.25 billion of 1.75 percent, 5.5-year securities at a spread of 95 basis points more than benchmark bonds and $900 million of 3.125 percent, 10.5-year debentures at 105 basis points, according to data compiled by Bloomberg.

Proceeds will be used for general corporate purposes, which may include debt repayments, acquisitions and stock repurchases, the Los Angeles-based company said in a filing today.

Bank of America Corp., JPMorgan Chase & Co., and Wells Fargo & Co. are managing the sale, said the person, who asked not to be identified because terms aren’t set. The bonds may be rated A1 by Moody’s Investors Service.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net;

To contact the editor responsible for this story Alan Goldstein at agoldstein5@bloomberg.net;

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