Anadarko Said to Plan Two-Part $1.25 Billion Bond Sale

Anadarko Petroleum Corp. (APC), co-owner of the well that blew out and started the Gulf of Mexico oil spill in 2010, sold $1.25 billion of debt.

The offering, which was boosted from a $1 billion, included $625 million each of 3.45 percent, 10-year bonds and 4.5 percent, 30-year notes, according to data compiled by Bloomberg.

Anadarko last issued bonds in August 2010, when the company sold $2 billion of 6.4 percent securities due 2017 that yielded 415.6 basis points more than government bonds. The 10-year notes issued today yielded 90 basis points more than similar-maturity Treasuries, Bloomberg data show. The 30-year debentures yielded 115 basis points more than benchmarks.

The company owned a 25 percent stake in BP Plc’s Macondo well, which spewed more than 4 million barrels of oil into the Gulf of Mexico.

Proceeds from the Woodlands, Texas-based company’s offering will be used for general corporate purposes, including debt repayment, working capital, capital expenditures, and acquisitions, according to a regulatory filing. A basis point is 0.01 percentage point.

Chairman and Chief Executive Officer Al Walker plans to spend as much as $8.8 billion this year on projects from the Gulf of Mexico to New Zealand after Anadarko settled an environmental lawsuit that had dragged on shares.

The global explorer that discovered more than 6 billion barrels of oil and natural gas in the past decade has beaten analysts’ estimates and reported record sales volumes. The company said in May that first-quarter revenue rose 50 percent to $5.84 billion and raised its 2014 forecast.

To contact the reporter on this story: Adam Janofsky in New York at ajanofsky4@bloomberg.net

To contact the editors responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net Faris Khan, Richard Bravo

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