OXY -- Bonds -- To Fund Anadarko Acquisition -- August 7, 2019

Updates

Later, 9:26 a.m. CT: I do not understand bonds, etc., so I may have this a**-backwards, as they say, but it certainly looks like:

• Warren Buffett made a killing (see link below regarding the merger)
• this really gives Ms Hollub some breathing room

A reader just sent me this -- look how "cheap" money is -- this is a huge, huge deal for everyone involved -- my two cents worth -- a huge win-win for all. A year from now things are going to look quite rosy. See disclaimer below.

Rates today:

• 3 Month Treasury -- 1.99% 
• 10 Year Treasury 1.61% -- 1.74% 
• 30 Year Treasury 2.14% -- 2.27%  

Original Note

Link here, fascinating on so many levels.

Occidental Petroleum Corp. is selling $13 billion of debt to help finance its acquisition of Anadarko Petroleum Corp. after receiving over $75 billion in orders for the deal at the peak.

It’s the biggest demand for a debt sale since Saudi Arabia’s Aramco received more than $100 billion in orders in April, and a sign that investors are willing to take risk again just a day after the trade-war induced volatility shook global markets.

Occidental is selling bonds to fund the $38 billion takeover in 10 parts. The longest portion of the offering, a 30-year security, may yield around 2.25 percentage points more than Treasuries, down from initial price talk of 2.7 percentage points.

Four other investment-grade borrowers are marketing debt deals today as issuers regained their confidence after the latest flareup in the U.S.-China trade war brought sales to a near halt on Monday. High-grade credit spreads jumped 6 basis points on Monday, the biggest single-day widening relative to risk premiums since June 2016’s U.K. Brexit decision.

Much more at the link.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, career, or relationship decisions based on what you read here or think you may have read here.

I track the OXY-Anadarko merger here.