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Anadarko Goes to the Well (APC, JPM, UBS, CS)

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By Douglas A. McIntyre Updated Published
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Anadarko Petroluem Corporation (NYSE:APC) has priced two tranches of senior notes, one of $500 million due 2014 at a coupon of 7.625% and the other of $600 million due 2019 at a coupon of 8.7%. Joint book-runners for the notes were JP Morgan (NYSE:JPM), UBS AG (NYSE:UBS) and Credit Suisse Group (NYSE:CS).

Anadarko plans to close the offering on March 5th, and will use the proceeds “for general corporate purposes, including repayment of certain debt maturing during 2009.” The company’s total long-term debt is nearly $11 billion, and its deferred long-term liability charges amount to another nearly $10 billion. Cash flow from operations reached about $6.44 billion in 2008, and the cash flows from investing and financing totaled a negative $5.35 billion. Cash and equivalents at December 30th were $1.09 billion.

Back in January, we did a story on a possible shopping trip by big oil. One of the targets we mentioned then was Anadarko, and it’s market cap has fallen by about $4 billion since January. As its market cap falls, Anadarko’s debt becomes less of a factor and its solid assets become more attractive.

Paul Ausick
March 3, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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