Each one in plain English, with the numbers worked through for a shareholder.
17 Oct 2011debt financing● NeutralMajor
Anadarko settled with BP over the Deepwater Horizon (Macondo) oil spill: it will pay BP $4.0 billion in cash within 45 days and hand over its 25% interest in Mississippi Canyon block 252. In return BP drops about $6.1 billion of invoices and future cost claims and indemnifies Anadarko for certain damage claims, guaranteed by BP Corporation North America and, if its net worth falls, BP plc. Fines, penalties and punitive damages are not covered, though Anadarko says it does not see them as a material risk. Payment is to come from cash and the $5.0 billion credit facility, with a possible sale of its Brazilian subsidiary planned to repay borrowings.
On September 2, 2010 Anadarko signed a new $5.0 billion, five-year senior secured revolving credit facility maturing September 2, 2015, led by JPMorgan Chase. It replaced the existing undrawn $1.3 billion revolver, which was retired. Nothing is borrowed under it. The loan is secured by certain U.S. exploration and production assets and 65% of the stock of certain foreign subsidiaries, and carries leverage, current-ratio and collateral-coverage covenants.
Anadarko Petroleum Corporation reported a ANADARKO PETROLEUM CORP shareholding of 10,302,631 shares (24.20% of votes) in a periodic institutional filing.
Anadarko agreed with a group of underwriters to sell $2.0 billion of 6.375% senior notes due 2017, expected to close August 12, 2010. This is the offering whose prospectus and pricing papers were filed earlier in the week. The company says it will use the proceeds to repay about $1.3 billion of debt due December 2012 and for general corporate purposes, including refinancing other near-term debt maturities.
