APA Corporation Announces Launch of Private Notes Offering
APA (Nasdaq: APA) has announced plans to offer senior notes due 2035 and 2055 through a private offering. The proceeds will be used to purchase outstanding senior indebtedness from its wholly-owned subsidiary Apache , with a maximum aggregate purchase price of $869 million (including accrued interest) through cash tender offers.
The settlement date for the tender offers and concurrent exchange offers is expected to be January 10, 2025. The Notes will initially be guaranteed by Apache until the aggregate principal amount of indebtedness under senior notes and debentures falls below $1 billion. The offering is to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.
APA (Nasdaq: APA) ha annunciato piani per offrire note senior con scadenza nel 2035 e 2055 tramite un'offerta privata. Il ricavato sarà utilizzato per acquistare debitorie senior outstanding dalla sua controllata Apache, con un prezzo massimo d'acquisto complessivo di 869 milioni di dollari (inclusi interessi maturati) tramite offerte di acquisto in contante.
La data di regolamento per le offerte di acquisto e le contemporanee offerte di scambio è prevista per 10 gennaio 2025. Le Note saranno inizialmente garantite da Apache fino a quando l'ammontare totale del debito sotto note senior e obbligazioni scende sotto 1 miliardo di dollari. L'offerta è destinata a compratori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi del Regolamento S.
APA (Nasdaq: APA) ha anunciado planes para ofrecer notas senior con vencimiento en 2035 y 2055 a través de una oferta privada. Los ingresos se utilizarán para comprar deuda senior pendiente de su filial totalmente controlada Apache, con un precio máximo de compra agregado de 869 millones de dólares (incluidos los intereses devengados) a través de ofertas de compra en efectivo.
La fecha de liquidación para las ofertas de compra y las ofertas de intercambio concurrentes se espera que sea el 10 de enero de 2025. Las Notas estarán inicialmente garantizadas por Apache hasta que el monto principal agregado de la deuda bajo notas senior y bonos caiga por debajo de 1 mil millones de dólares. La oferta está destinada a compradores institucionales calificados según la Regla 144A y personas no estadounidenses bajo la Regulación S.
APA (Nasdaq: APA)는 2035년과 2055년 만기인 선순위 노트를 사모 방식으로 제공할 계획을 발표했습니다. 수익금은 100% 자회사인 Apache의 미상환 선순위 부채를 구매하는 데 사용되며, 현금 입찰을 통해 최대 총 구매 가격은 $869 백만 (누적 이자 포함)입니다.
입찰 및 동시 교환 제안의 결제일은 2025년 1월 10일로 예상됩니다. 노트는 선순위 노트 및 사채의 총 원금이 $10억 이하로 떨어질 때까지 Apache에 의해 초기 보증됩니다. 이 제안은 규칙 144A에 따라 자격을 갖춘 기관 투자자 및 규정 S에 따라 비미국 인원에게 제공됩니다.
APA (Nasdaq: APA) a annoncé des projets d'offre de titres senior arrivant à échéance en 2035 et 2055 par le biais d'une offre privée. Les recettes seront utilisées pour acheter des dettes senior non réglées de sa filiale entièrement détenue Apache, avec un prix d'achat maximal total de 869 millions de dollars (y compris les intérêts courus) par le biais d'offres de rachat en espèces.
La date de règlement pour les offres de rachat et les offres d'échange concurrentes est prévue pour le 10 janvier 2025. Les Titres seront initialement garantis par Apache jusqu'à ce que le montant principal total de la dette sous les titres seniors et les obligations tombe en dessous de 1 milliard de dollars. L'offre est destinée aux acheteurs institutionnels qualifiés conformément à la règle 144A et aux personnes non américaines conformément au règlement S.
APA (Nasdaq: APA) hat Pläne angekündigt, Senior Notes mit Fälligkeiten in 2035 und 2055 im Rahmen eines privaten Angebots anzubieten. Die Erlöse werden verwendet, um ausstehende Senior-Schulden von der vollständig im Besitz befindlichen Tochtergesellschaft Apache zu kaufen, mit einem maximalen Gesamtkaufpreis von 869 Millionen US-Dollar (einschließlich aufgelaufener Zinsen) durch Barkurzwahlangebote.
Das Abrechnungsdatum für die Tenderangebote und die gleichzeitigen Austauschangebote wird voraussichtlich der 10. Januar 2025 sein. Die Notes werden zunächst von Apache garantiert, bis der Gesamtbetrag der Schulden unter Senior Notes und Anleihen unter 1 Milliarde US-Dollar fällt. Das Angebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-US-Personen gemäß Regulierung S.
- Strategic debt restructuring through new notes offering
- Potential improvement in debt maturity profile with new 2035 and 2055 notes
- Taking on new long-term debt obligations through 2055
- to institutional buyers, reducing market liquidity
Insights
APA 's strategic debt restructuring through a private notes offering indicates a sophisticated liability management approach. The dual-tranche offering, with maturities in 2035 and 2055, aims to refinance <money>$869 million</money> of Apache 's existing debt. This move effectively extends the company's debt maturity profile and potentially optimizes its capital structure.
The conditional guarantee structure, linked to Apache's outstanding senior notes falling below <money>$1 billion</money>, demonstrates careful consideration of credit enhancement mechanisms while maintaining flexibility for future corporate restructuring. The Rule 144A/Reg S format targeting qualified institutional buyers suggests strong institutional interest and could potentially result in favorable pricing terms.
Think of this as upgrading your home's mortgage - you're not necessarily borrowing more money, but rather restructuring existing debt to potentially get better terms and a more manageable payment schedule.
The timing of this debt restructuring aligns with broader market dynamics. With the energy sector experiencing volatility, APA's proactive approach to debt management could enhance financial flexibility and strengthen its balance sheet position. The concurrent exchange offers and tender offers create a comprehensive refinancing strategy that could optimize the company's debt stack.
The structure suggests APA is preparing for potential market opportunities while maintaining prudent financial management. For investors, this indicates strong treasury management and could positively impact the company's credit metrics and overall financial health. The private placement format also provides execution certainty compared to public offerings.
HOUSTON, Jan. 07, 2025 (GLOBE NEWSWIRE) -- APA Corporation (“APA”) (Nasdaq: APA) announced today that it intends to offer, subject to market and other conditions, a series of senior notes due 2035 and a series of senior notes due 2055 (collectively, the “Notes”) in a private offering (the “Private Offering”) that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).
APA intends to use the net proceeds from the proposed offering to purchase certain outstanding senior indebtedness issued by Apache Corporation, a Delaware corporation and a wholly-owned subsidiary of APA (“Apache”) in cash tender offers with respect to several series of its outstanding notes, which commenced on December 3, 2024, with a maximum aggregate purchase price of
The Notes will be initially guaranteed by Apache, until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than
The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any state or other jurisdiction, and the Notes may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy any securities, nor shall there be any sales of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under “Forward-Looking Statements and Risk” and “Risk Factors” in APA’s Annual Report on Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2024 and similar sections in any subsequent filings, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Contacts
| Investor: | (281) 302-2286 | Ben Rodgers |
| Media: | (713) 296-7276 | Alexandra Franceschi |
| Website: | www.apacorp.com | |
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FAQ
What is the purpose of APA 's new notes offering in January 2025?
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What are the maturity dates for APA's new senior notes offering?
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Who can purchase APA's new senior notes in this private offering?
