OCCIDENTAL PETROLEUM CORPORATION UNDERWRITING AGREEMENT
Exhibit 1.1
EXECUTION VERSION
OCCIDENTAL PETROLEUM CORPORATION
August 12, 2020
X.X. Xxxxxx Securities LLC
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
MUFG Securities Americas Inc.
1221 Avenue of the Americas, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
XXX Capital Markets, LLC
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
SMBC Nikko Securities America, Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
as Representatives of the several Underwriters Ladies and Gentlemen:
Occidental Petroleum Corporation, a Delaware corporation (the “Company”), confirms its agreement with the underwriters listed on Schedule A
(collectively, the “Underwriters,” which term also includes any underwriter substituted as hereinafter provided in Section 11) with respect to the issue and sale by the Company of (i) $900,000,000 aggregate principal amount of the Company’s 5.875%
Senior Notes due 2025 (the “2025 Notes”), (ii) $600,000,000 aggregate principal amount of the Company’s 6.375% Senior Notes due 2028 (the “2028 Notes”) and (iii) $1,500,000,000 aggregate principal amount of the Company’s 6.625% Senior Notes due 2030
(the “2030 Notes” and, together with the 2025 Notes and 2028 Notes, the “Notes”) and the purchase by the Underwriters, acting severally and not jointly, of the respective principal amounts of Notes set forth opposite their names on Schedule A.
The Notes are to be issued pursuant to an indenture, dated as of August 8, 2019 (the “Indenture,” which term, for purposes of this Agreement and each series of Notes herein, includes the applicable Officer’s Certificate with respect to such series
of Notes delivered pursuant to Section 301 of the Indenture), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). X.X. Xxxxxx Securities LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC and
SMBC Nikko Securities America, Inc. will be the representatives of the several Underwriters (the “Representatives”).
The Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3ASR (No. 333-232928) for the
registration of debt securities, including the Notes, under the Securities Act of 1933, as amended (the “1933 Act”), and the offering thereof from time to time in accordance with Rule 415 of the rules and regulations of the Commission under the 1933
Act (the “1933 Act Regulations”). Such registration statement became effective upon filing with the Commission pursuant to Rule 462(e) of the 1933 Act Regulations, and the Indenture has been qualified under the Trust Indenture Act of 1939, as amended
(the “1939 Act”). Such registration statement (as amended by any subsequent post-effective amendments thereto) and the prospectus dated July 31, 2019 (the “Base Prospectus”), together with the final prospectus supplement dated August 12, 2020 (the
“Final Prospectus Supplement”) relating to the Notes, including, in each case, all Incorporated Documents (as hereinafter defined) and, solely in the case of any such registration statement, the information that is deemed pursuant to Rule 430B of the
1933 Act Regulations to be part of such registration statement (“Rule 430B Information”), are referred to herein as the “Registration Statement” and the “Prospectus,” respectively, except that, if any revised prospectus or any revised or
additional prospectus supplement filed by the Company is provided to the Underwriters by the Company for use in connection with the offering of the Notes (including for delivery upon request of purchasers of Notes pursuant to Rule 173 of the 1933 Act
Regulations), the term “Prospectus” will refer to such revised prospectus or any such revised or additional prospectus supplement, as the case may be, from and after the time it is first provided to the Underwriters for such use. As used herein, the
term “preliminary prospectus” means any prospectus supplement filed by the Company relating to the Notes that is captioned “Subject to Completion” or “preliminary prospectus supplement” or that has a similar caption, together with the Base
Prospectus, including all Incorporated Documents, it being understood that all references herein to a “preliminary prospectus” include, without limitation, the Statutory Prospectus (as defined below). Any reference herein to the Registration
Statement, any preliminary prospectus or the Prospectus is deemed to refer to and include the documents, financial statements and schedules incorporated, or deemed to be incorporated, by reference therein (other than information in such documents,
financial statements and schedules that is deemed not to be filed) pursuant to Item 12 of Form S-3ASR under the 1933 Act, and any reference to any amendment or supplement to the Registration Statement, any preliminary prospectus or the Prospectus is
deemed to refer to and include any documents, financial statements and schedules filed by the Company with the Commission under the Securities Exchange Act of 1934, as amended (the “1934 Act”), and so incorporated, or deemed to be incorporated, by
reference (other than information in such documents, financial statements and schedules that is deemed not to be filed) (such incorporated documents, financial statements and schedules being herein called the “Incorporated Documents”).
Notwithstanding the foregoing, for purposes of this Agreement, any prospectus supplement prepared or filed with respect to an offering pursuant to the Registration Statement of any securities other than the Notes will not be deemed to have
supplemented any preliminary prospectus or the Prospectus and the information therein will not be deemed Rule 430B Information. For purposes of this Agreement, all references to the Registration Statement, the Prospectus or any preliminary
prospectus, or to any Issuer Free Writing Prospectus, Issuer General Use Free Writing Prospectus or Issuer Limited Use Free Writing Prospectus (as such terms are hereinafter defined) or to any amendment or supplement to any of the foregoing are
deemed to include any copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system (“XXXXX”).
The Company understands that the Underwriters propose to make a public offering of the Notes as soon as the Underwriters deem advisable after this Agreement
has been executed and delivered.
SECTION 1. Representations and Warranties.
The Company represents and warrants to each of the Underwriters as of the date hereof, as of the Applicable Time (as defined below) and as of the Closing
Time referred to in Section 2(b), as follows:
(a) Offering Qualifications.
(i) At the respective times of filing the Registration Statement and any post-effective amendments thereto,
(ii) at the time of the most recent amendment thereto for the
purposes of complying with Section 10(a)(3) of the 1933 Act (whether such amendment was by post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d) of the 1934 Act or form of prospectus), and
(iii) at the time the Company or any person acting on its behalf
(within the meaning, for this clause only, of Rule 163(c) of the 1933 Act Regulations) made any offer relating to the Notes in reliance on the exemption of Rule 163 of the 1933 Act Regulations:
(A) the Company was or is (as the case may
be) a “well-known seasoned issuer,” as defined in Rule 405 of the 1933 Act Regulations (“Rule 405”), including not having been and not being an “ineligible issuer” as defined in Rule 405;
(B) the Registration Statement is an “automatic shelf
registration statement,” as defined in Rule 405, that initially became effective within three years of the date of this Agreement; and
(C) the Company has not received from the Commission any notice
pursuant to Rule 401(g)(2) of the 1933 Act Regulations objecting to the use of the automatic shelf registration statement form.
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(b) Not Ineligible. At
the earliest time after the filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the 1933 Act Regulations) of the Notes, the Company was not and is not
an “ineligible issuer,” as defined in Rule 405, without taking account of any determination by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an “ineligible issuer.”
(c) Incorporated Document
Compliance. (i) The Incorporated Documents, when they were filed (or, if an amendment with respect to any such Incorporated Document was filed, when such amendment was filed) with the Commission, as the case may be, complied in all
material respects with the requirements of the 1934 Act and the rules and regulations of the Commission under the 1934 Act (the “1934 Act Regulations”), and
(ii) any Incorporated Documents filed subsequent to the date of
this Agreement and prior to the later of (x) the Closing Time and (y) the time at which the Representatives deliver notice to the Company of the termination of the offering of the Notes pursuant to Section 3(b) (“Offering
Termination Notice;” the time at which the Offering Termination Notice is delivered to the Company, the “Offering Termination Notice Time”) will, when they are filed with the Commission, comply in
all material respects with the requirements of the 1934 Act and the 1934 Act Regulations. The Company understands and agrees that the Representatives need not deliver an Offering Termination Notice to the Company (A) so long as any Underwriter owns
an unsold allotment of Notes purchased pursuant to this Agreement or (B) so long as delivery of a prospectus or, in lieu thereof, the notice referred to in Rule 173(a) of the 1933 Act Regulations is required (1) in connection with sales or
solicitations of offers to purchase Notes or (2) due to a request of any purchaser of Notes pursuant to Rule 173 of the 1933 Act Regulations.
(d) Registration Statement and
Prospectus Compliance. (i) The Registration Statement, at (A) its original effective date and the effective date of each post-effective amendment thereto, if any, and (B) each deemed effective date with respect to the Underwriters pursuant
to Rule 430B(f)(2) of the 1933 Act Regulations, complied and will comply in all material respects with the provisions of the 1933 Act and the 1933 Act Regulations and did not and will not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading, and
(ii) the Prospectus relating to the Notes, as of its date, as of
the date of any supplement to the Prospectus and as of the Closing Time, complied and will comply in all material respects with the provisions of the 1933 Act and the 1933 Act Regulations and did not and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were or will be made, not misleading.
| (e) |
10b-5 Compliance and No Free Writing Prospectus Conflict. (i) As of the Applicable Time, neither
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(x) the Final Term Sheet (as defined below), any other Issuer General Use Free
Writing Prospectus(es) issued at or prior to the Applicable Time and the Statutory Prospectus, all considered together (collectively, the “General Disclosure Package”), nor
(y) any individual Issuer Limited Use Free Writing Prospectus issued at or prior to
the Applicable Time, when considered together with the General Disclosure Package:
included any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.
(ii) Each Issuer Free Writing Prospectus complied and, except
during such time, if any, as the Company shall have suspended the use of such Issuer Free Writing Prospectus as contemplated by Section 4(e)(ii), will comply with the requirements of Rule 433(c)(1) of the 1933 Act Regulations.
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As used in this subsection and elsewhere in this Agreement:
“Applicable Time” means 3:45 p.m. (New York City time) on August 12, 2020 or such other time as agreed by the
Company and the Representatives.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the 1933 Act
Regulations (“Rule 433”), relating to the Notes that (i) is required to be filed with the Commission by the Company, (ii) is a “road show” that constitutes a written communication within the meaning of Rule
433(d)(8)(i), whether or not required to be filed with the Commission or (iii) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Notes or of the offering thereof that does not reflect the final terms, in
each case, in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g).
“Issuer General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general
distribution to prospective investors, as evidenced by it being specified in Schedule C.
“Issuer Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not an Issuer General
Use Free Writing Prospectus.
“Statutory Prospectus” means the Base Prospectus dated July 31, 2019 and the preliminary prospectus supplement
dated August 12, 2020 relating to the Notes, including the Incorporated Documents.
The foregoing representations and warranties in subsection 1(d) (except as it relates to compliance as to form) and (e) do not apply to statements or omissions in the
Registration Statement, any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus, or any amendments or supplements thereto, made in reliance upon and in conformity with information furnished to the Company in writing by or on
behalf of the Underwriters through the Representatives expressly for use therein or to those parts of the Registration Statement which constitute the Trustee’s Statements of Eligibility and Qualification on Form T-1 under the 1939 Act (collectively,
the “Form T-1”).
(f) Documents Authorized and
Accurately Summarized. This Agreement, the Indenture and the Notes have been duly authorized by the Company and, to the extent described in the General Disclosure Package or the Prospectus, are fairly and accurately summarized therein in
all material respects.
(g) Indenture and Notes
Enforceable. The Indenture has been duly qualified under the 1939 Act and, at the Closing Time, will have been duly executed and delivered by the Company and (assuming the due execution and delivery thereof by the Trustee) is, and the
Notes (when issued by the Company and authenticated in accordance with the Indenture and delivered to and paid for by the Underwriters) will have been duly executed and delivered by the Company and will be the legal, valid and binding obligations
of the Company, enforceable against the Company in accordance with their terms, except (x) as such enforceability may be subject to or limited by (A) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect relating to or affecting the enforcement of creditors’ rights generally, (B) the applicability or effect of any fraudulent transfer, preference or similar law, (C) general principles of equity (regardless of whether such enforcement is
considered in a proceeding in equity or at law) or (D) the effect of general rules of contract law that limit the enforceability of provisions requiring indemnification of a party for liability for its own action or inaction to the extent the
action or inaction involves gross negligence, recklessness, willful misconduct or unlawful conduct and (y) that the waiver contained in Section 515 of the Indenture may be deemed unenforceable.
(h) Notes Entitled to Indenture
Benefits. The Notes (when issued by the Company and authenticated in accordance with the terms of the Indenture and delivered to and paid for by the Underwriters) will be entitled to the benefits of the Indenture (subject to the exceptions
set forth in the preceding sentence).
(i) Corporate Representations.
(i) The Company and each of Occidental Chemical Holding Corporation, a California corporation, OXY USA Inc., a Delaware corporation, and Anadarko Petroleum Corporation, a Delaware corporation (“Anadarko”)
(each, a “Principal Domestic Subsidiary” and, collectively, the “Principal Domestic Subsidiaries”), is validly existing and in good standing under the laws of their respective jurisdictions of organization.
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| (ii) |
The Company and each Principal Domestic Subsidiary:
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(x) has requisite corporate power and corporate authority to own its respective
properties and carry on its respective business as presently conducted, as described in the General Disclosure Package and the Prospectus, and
(y) is duly registered or qualified to conduct business, and is in good standing,
in each jurisdiction in which it owns or leases property or transacts business and in which such registration or qualification is necessary, except as to jurisdictions where the failure to do so would not have a material adverse effect on the
Company and its subsidiaries, taken as a whole.
(iii) All of the outstanding capital stock or other securities
evidencing equity ownership of each Principal Domestic Subsidiary:
(x) have been duly authorized and validly issued and are fully paid and non-
assessable, and
(y) except as otherwise disclosed in the Registration Statement, the General
Disclosure Package and the Prospectus, are owned by the Company with respect to the Company’s Principal Domestic Subsidiaries, in each case, directly or indirectly through subsidiaries, free and clear of any security interest, claim, lien or
encumbrance.
(j) Material Adverse Change.
Except as contemplated in the General Disclosure Package and the Prospectus or reflected therein by the filing of any amendment or supplement thereto or any Incorporated Document, since the date of the most recent consolidated financial statements
included or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus, unless the Company has notified the Underwriters as provided in Section 4(e), there has not been any material adverse change, or
any development that is reasonably likely to result in a material adverse change, in the consolidated financial condition or consolidated results of operations of the Company and its subsidiaries, taken as a whole.
(k) No Violation of Charter,
Contracts or Orders. The execution and delivery of this Agreement by the Company, the issuance and sale of the Notes and the performance by the Company of its obligations under this Agreement and the Indenture do not and will not violate
or constitute a breach of or a default (with the passage of time or otherwise) under:
(i) the Restated Certificate of Incorporation or Amended and
Restated Bylaws of the Company, in each case, as amended,
(ii) any agreement or instrument (which is, individually or in
the aggregate, material to the Company and its subsidiaries, taken as a whole) to which the Company or any Principal Domestic Subsidiary is a party or by which any of them is bound or to which any of the property or assets of the Company or any
Principal Domestic Subsidiary is subject, or
(iii) any order of any court or governmental agency or authority
(which is, individually or in the aggregate, material to the Company and its subsidiaries, taken as a whole) presently in effect and applicable to the Company or any Principal Domestic Subsidiary.
(l) Governmental Consents.
Except for orders, permits and similar authorizations required under the securities or Blue Sky laws of certain jurisdictions, including jurisdictions outside the United States, or required of any securities exchange on which any of the Notes might
be listed, no consent, approval, authorization or other order of any regulatory body, administrative agency or other governmental body is legally required for the valid issuance and sale of the Notes.
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(m) Financial Statements.
The consolidated financial statements of the Company (including the related notes thereto) included in the Registration Statement, the General Disclosure Package and the Prospectus, or incorporated therein by reference, fairly present in all
material respects the consolidated financial position and results of operations of the Company and its subsidiaries, at the respective dates and for the respective periods to which they apply. Such consolidated financial statements have been
prepared in accordance with United States generally accepted accounting principles consistently applied, except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus. The interactive data in eXtensible
Business Reporting Language incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus fairly presents the required information in all material respects and has been prepared in accordance with the
Commission’s rules and guidelines applicable thereto.
(n) Disclosure Controls and
Procedures. The Company maintains “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the 0000 Xxx) that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits
under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to
the Company’s management as appropriate to allow timely decisions regarding required disclosure. The Company has carried out evaluations of the effectiveness of its disclosure controls and procedures as required by Rule 13a-15 of the 1934 Act.
(o) Internal Controls.
The Company maintains “internal control over financial reporting” (as defined in Rule 13a-15(f) of the 0000 Xxx) that have been designed by, or under the supervision of, its principal executive and principal financial officers, or persons
performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and that
include those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with the
authorizations of management and the directors of the Company; (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material adverse
effect on the Company’s financial statements; and (iv) provide reasonable assurance that the interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement, the General Disclosure Package and the
Prospectus fairly presents the required information in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.
(p) No Unlawful Payments.
None of (x) the Company or any of its subsidiaries or (y) to the knowledge of the Company, any directors, officers, employees, agents, controlled affiliates or other persons acting on behalf of the Company or any of its subsidiaries has (i) used
any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful
payment or benefit to any foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of
the foregoing, or any political party or party official or candidate for political office; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), or any applicable law or regulation
implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed an offence under the Xxxxxxx Xxx 0000 of the United Kingdom (the “U.K. Bribery Act”), or any other applicable
anti-bribery or anti-corruption law; or (iv) made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback or other
unlawful or improper payment or benefit. The Company and its subsidiaries have instituted, maintain and enforce, and will continue to maintain and enforce, policies and procedures designed to promote and ensure compliance with all applicable
anti-bribery and anti-corruption laws. Neither the Company nor any of its subsidiaries will use, directly or indirectly, any part of the proceeds from the offering of the Notes hereunder in violation of the FCPA or the U.K. Bribery Act, each as may
be amended, or similar law of any other relevant jurisdiction, or the rules or regulations thereunder.
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(q) Compliance with Anti-Money
Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in material compliance with applicable financial recordkeeping and reporting requirements, including those of the Currency and
Foreign Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes of all jurisdictions where the Company or any of its subsidiaries conducts business, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(r) No Conflicts with Sanctions
Laws. None of (x) the Company or any of its subsidiaries or (y) to the knowledge of the Company, any directors, officers, employees, agents, controlled affiliates or other persons acting on behalf of the Company or any of its subsidiaries
is currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State and
including, without limitation, the designation as a “specially designated national” or “blocked person,” the United Nations Security Council, the European Union, Her Majesty's Treasury or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company nor any of its subsidiaries organized or resident in a country or territory that is the subject or target of Sanctions, including, without limitation, Cuba, Iran, North Korea,
Syria and Crimea (each, a “Sanctioned Country”); and the Company will not directly or indirectly use the proceeds of the offering of the Notes hereunder, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, (i) to fund or facilitate any activities of or business with any person or in any country or territory that, at the time of such funding or facilitation, is the subject or
target of Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person (including any person participating in the transaction, whether as
underwriter, initial purchaser, advisor, investor or otherwise) of Sanctions.
Any certificate signed by any officer of the Company and delivered to the Underwriters, the Representatives or counsel for the Underwriters in connection
with the transactions contemplated in this Agreement will be deemed a representation and warranty by the Company to the Underwriters as to the matters covered by such certificate as of its date.
SECTION 2. Sale and Delivery to the Underwriters;
Closing.
(a) Purchase and Sale. On
the basis of the representations and warranties herein contained and subject to the terms and conditions herein set forth, the Company agrees to issue and sell to each Underwriter, severally and not jointly, and each Underwriter, severally and not
jointly, agrees to purchase from the Company at (i) 99.25% of the principal amount thereof, the principal amount of the 2025 Notes set forth on Schedule A opposite the name of such Underwriter, (ii) 99.25% of the principal amount thereof,
the principal amount of the 2028 Notes set forth on Schedule A opposite the name of such Underwriter and (iii) 99.25% of the principal amount thereof, the principal amount of the 2030 Notes set forth on Schedule A opposite the name
of such Underwriter.
(b) Closing Time. Payment
of the purchase price for, and delivery of, the Notes will be made at the offices of Weil, Gotshal & Xxxxxx LLP, 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, or at such other place as will be agreed upon by the Underwriters and the Company, at
9:00 a.m. (New York City time) on August 26, 2020 (unless postponed in accordance with the provisions of Section 11), or such other time not later than ten business days after such date as is agreed upon by the Representatives and the Company (such
time and date of payment and delivery being herein called “Closing Time”). Payment will be made to the Company by wire transfer of immediately available funds to a bank account designated by the Company, against delivery to the nominee of The
Depository Trust Company, for the account of the Underwriters, of one or more global notes representing the Notes (the “Global Notes”) to be purchased by them. It is understood that each Underwriter has authorized the Representatives for its
respective account, to accept delivery of, and receipt for, and make payment of the purchase price for, the Notes which such Underwriter has agreed to purchase. The Global Notes will be made available for examination and packaging by the
Underwriters not later than 10:00 a.m. (New York City time) on the last business day prior to Closing Time.
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(c) No Fiduciary Relationship.
The Company acknowledges and agrees that the Underwriters are acting solely in the capacity of an arm’s length contractual counterparty to the Company with respect to the offering of Notes contemplated hereby (including in connection with
determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company or any other person. Additionally, neither the Representatives nor any other Underwriter is advising the Company or any other
person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Company has consulted its own respective advisors concerning such matters to the extent it deemed appropriate, and the Underwriters will have no
responsibility or liability to the Company with respect thereto. Any review by the Underwriters of the Company, the transactions contemplated hereby or any other matters relating to such transactions has been and will be performed solely for the
benefit of the Underwriters and not on behalf of the Company.
SECTION 3. Foreign Offerings; Offering Termination
Notice.
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Foreign Offerings. Each Underwriter, severally and not jointly, represents and agrees that:
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| (i) |
it has not solicited, and will not solicit, offers to purchase any of the Notes from,
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| (ii) |
it has not sold, and will not sell, any of the Notes to, and
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(iii) it has not distributed, and will not distribute, the
General Disclosure Package or the Prospectus to
any person or entity in any jurisdiction outside of the United States (collectively, “Foreign Offers and Sales”) except, in each case,
in compliance in all material respects with all applicable laws and, in connection with the initial offering of, or subscription for, any of the Notes, in full compliance with the requirements and procedures, if any, established by, and subject to
any exceptions granted by, the Company, in an email or other writing delivered to the Representatives, with respect to any such Foreign Offers and Sales. For the purposes of this paragraph, “United States”
means the United States of America, its territories, its possessions (including the Commonwealth of Puerto Rico) and other areas subject to its jurisdiction.
In particular and without limiting the generality of the foregoing:
(A) Each Underwriter, severally and not jointly, agrees to
distribute, in connection with any Foreign Offers and Sales, only those Prospectuses used in connection therewith that have been appropriately “stickered” for use in the jurisdiction in which such Foreign Offers and Sales are to be made.
(B) With respect to the United Kingdom, each Underwriter
represents and agrees, severally and not jointly, that: (1) it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning
of Section 21 of the Financial Services and Markets Xxx 0000, as amended (“FSMA”)) received by it in connection with the issue or sale of the Notes in circumstances in which Section 21(1) of the FSMA would
not apply to the Company; and (2) it has complied and will comply with all applicable provisions of FSMA with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom.
(b) Offering Termination Notice.
Promptly after termination of the offering of the Notes, the Representatives shall provide the Offering Termination Notice (which notice may be given by e-mail) to the Company; provided that the
Representatives need not deliver an Offering Termination Notice to the Company (A) so long as any Underwriter owns an unsold allotment of Notes purchased pursuant to this Agreement or (B) so long as delivery of a prospectus or, in lieu thereof, the
notice referred to in Rule 173(a) of the 1933 Act Regulations is required (1) in connection with sales or solicitations of offers to purchase Notes or (2) due to a request of any purchaser of Notes pursuant to Rule 173 of the 1933 Act Regulations.
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SECTION 4. Covenants of the Company.
The Company covenants with each Underwriter as follows:
(a) Notice of Certain Events.
Prior to the Offering Termination Notice Time, the Company will notify the Underwriters promptly of:
(i) the effectiveness of any post-effective amendment to the
Registration Statement (other than a post-effective amendment relating solely to an offering of securities other than the Notes),
(ii) the transmittal to the Commission for filing of any
supplement to any preliminary prospectus or the Prospectus (other than an amendment or supplement relating solely to an offering of securities other than the Notes) or any document to be filed pursuant to the 1934 Act which would be incorporated by
reference in the Prospectus,
(iii) the receipt of any comments from the Commission with
respect to the Registration Statement, any Issuer Free Writing Prospectus, any preliminary prospectus or the Prospectus,
(iv) any request by the Commission for any amendment to the
Registration Statement or any amendment or supplement to the Prospectus, any preliminary prospectus or any Issuer Free Writing Prospectus or for additional information (other than any amendment or supplement to a prospectus relating solely to an
offering of securities other than the Notes),
(v) the issuance by the Commission of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose, and
(vi) any examination pursuant to Section
8(e) of the 1933 Act concerning the Registration Statement or, if the Company becomes the subject of a proceeding under Section 8A of the 1933 Act, in connection with the offering of the Notes.
If any stop order is issued, the Company will use its reasonable best efforts to obtain the lifting thereof at the earliest possible moment.
(b) Payment of Commission Fees.
The Company will pay the required Commission filing fees relating to the Notes within the time required by Rule 456(b)(1) (i) of the 1933 Act Regulations and otherwise in accordance with Rules 456(b) and 457(r) of the 1933 Act Regulations
(including, if applicable, by updating the “Calculation of Registration Fee” table in accordance with Rule 456(b)(1) (ii) either in a post-effective amendment to the Registration Statement or on the cover
page of a prospectus or prospectus supplement filed pursuant to Rule 424(b)).
| (c) |
Notice of Certain Proposed Filings. Prior to the Offering Termination Notice Time, the Company will:
|
(i) give the Underwriters advance notice of its intention to file
any amendment to the Registration Statement or any amendment or supplement to any preliminary prospectus or the Prospectus (other than an amendment or supplement to a prospectus relating solely to an offering of securities other than the Notes),
| (ii) |
furnish the Underwriters with copies of any such amendment or supplement, and
|
(iii) not file any such amendment or supplement of which the
Underwriters have not previously have been advised or to which the Representatives reasonably object in writing, unless, in the judgment of the Company and its counsel, such amendment or supplement is necessary to comply with law.
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(d) Copies of the Registration
Statement and the Prospectus. The Company will deliver to each of the Underwriters one signed and as many conformed copies of the Registration Statement (as originally filed) and of each amendment thereto relating to the Notes (including
the Incorporated Documents and any exhibits filed therewith or incorporated by reference therein) as the Underwriters may reasonably request. The Company will furnish to the Underwriters as many copies of the Prospectus (as amended or supplemented)
and any Issuer Free Writing Prospectuses as the Underwriters reasonably request prior to the Offering Termination Notice Time.
| (e) |
Revisions of Prospectus—Material Changes. Prior to the Offering Termination Notice Time,
|
(i) if (x) any event occurs or condition exists as a result of
which it is necessary, in the opinion of counsel for the Company and of counsel for the Underwriters, to further amend or supplement the Prospectus in order that the Prospectus will not include an untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein not misleading, in the light of the circumstances existing at the time it is delivered to a purchaser, or (y) it is necessary, in the opinion of such counsel, to amend or
supplement the Registration Statement or the Prospectus in order to comply with the requirements of the 1933 Act or the 1933 Act Regulations:
| (A) |
prompt notice will be given, and confirmed in writing, to the Underwriters, and
|
(B) the Company will promptly prepare and file an amendment or
supplement to the Prospectus so that the Prospectus, as amended or supplemented, will (1) not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein not misleading, in
the light of the circumstances existing at the time it is delivered to the Underwriters, or (2) comply with the requirements of the 1933 Act or the 1933 Act Regulations, as applicable, or
(ii) if at any time following issuance of an Issuer Free Writing
Prospectus there occurred or occurs an event or development as a result of which (x) such Issuer Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement or the Prospectus or any preliminary
prospectus or (y) when considered together with the General Disclosure Package, included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances prevailing at that subsequent time, not misleading, the Company will promptly notify the Underwriters and will promptly amend or supplement such Issuer Free Writing Prospectus to eliminate or correct such conflict,
untrue statement or omission and shall promptly provide such amended or supplemented Issuer Free Writing Prospectus to the Underwriters. Such notification from the Company to the Underwriters shall direct the Underwriters to suspend use of such
Issuer Free Writing Prospectus until the Company shall have provided the Underwriters an amended or supplemented Issuer Free Writing Prospectus as contemplated above, in which case the Underwriters will cease using such Issuer Free Writing
Prospectus until such time as the Company shall have provided them such amended or supplemented Issuer Free Writing Prospectus.
The foregoing covenants in this Section 4(e) do not apply to statements or omissions in the Prospectus or any Issuer Free Writing Prospectus made in
reliance upon and in conformity with information furnished to the Company in writing by or on behalf of the Underwriters through the Representatives expressly for use therein or in any Form T-1.
(f) Earnings Statements.
The Company will make generally available to its security holders a consolidated earnings statement (which need not be audited) covering a period of at least twelve months commencing after the Closing Time, as soon as is reasonably practicable
after the end of such period, which earnings statement will satisfy the provisions of Section 11(a) of the 1933 Act (and at the option of the Company, Rule 158 of the 1933 Act Regulations).
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(g) Blue Sky Qualifications.
The Company will endeavor, in cooperation with the Underwriters, to qualify the Notes for offering and sale under the applicable securities laws of such states and other jurisdictions as the Underwriters may reasonably designate (provided that no
registration will be required in any jurisdiction outside the United States) and will maintain such qualifications in effect for as long as may be required for the distribution of the Notes; provided, however, that the Company will promptly notify
the Underwriters of any suspension of any such qualifications; and provided, further, that the Company will not be obligated to register or qualify as a foreign corporation or take any action which would subject it to general service of process in
any jurisdiction where it is not now so subject.
(h) Filing of Prospectus;
Preparation of Final Term Sheet. (i) The Company will prepare a final term sheet (the “Final Term Sheet”) reflecting the final terms of the Notes, which will be substantially in the form set forth in Schedule B but may
also include credit ratings information with respect to the Notes, and will file such Final Term Sheet, in a form approved by the Representatives, as an “issuer free writing prospectus” pursuant to Rule 433 prior to the close of business within two
business days after the date of this Agreement.
(ii) The Company will prepare and file or transmit for filing
with the Commission within the time period specified by Rule 424(b) of the 1933 Act Regulations (without reliance on Rule 424(b)(8)), the Prospectus containing the terms of the Notes and such other information as the Representatives and the Company
deem appropriate.
(i) Issuer Free Writing
Prospectuses. (i) The Company represents and agrees that, unless it obtains the prior consent of the Representatives (which will not be unreasonably withheld or delayed), and (ii) each Underwriter, severally and not jointly, represents and
agrees that, unless it obtains the prior written consent of the Company and the Representatives (which will not be unreasonably withheld or delayed), it has not made and will not make any offer relating to the Notes that would constitute an “issuer
free writing prospectus,” as defined in Rule 433, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed by the Company with the Commission or retained by the Company pursuant to Rule 433;
provided that the Company consents to the use by any Underwriter of a free writing prospectus that:
| (i) |
is not an “issuer free writing prospectus” as defined in Rule 433, and
|
| (ii) |
contains only:
|
(x) information describing the preliminary terms of the Notes or their offering,
(y) information that describes the final terms of the Notes or their offering and
that is included in the Final Term Sheet contemplated in Section 4(h) of this Agreement, or
(z) contains comparable bond price or similar information that (in the case of this
clause (z) only) is not “issuer information,” as defined in Rule 433.
Any such free writing prospectus as to which consent has been given by the Representatives or by the Company and the Representatives, as the case may be,
is referred to as a “Permitted Free Writing Prospectus.” Without limiting the effect of the prior sentence, it is agreed that each of the Final Term Sheet and any Issuer Free Writing Prospectus listed on Schedule C
is a Permitted Free Writing Prospectus.
SECTION 5. Payment of Expenses.
The Company will pay all expenses incident to the performance of its obligations under this Agreement, including:
(a) The preparation and filing of the Registration Statement and
all amendments thereto, the General Disclosure Package, each preliminary prospectus and the Prospectus and any amendments or supplements thereto and all Incorporated Documents;
| (b) |
The preparation, filing and printing of this Agreement;
|
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| (c) |
The preparation, printing, issuance and delivery of the Notes;
|
(d) The reasonable fees and disbursements of the Trustee and its
counsel and of any calculation agent or exchange rate agent in connection with the Indenture and the Notes;
(e) The qualification of the Notes under securities laws in
accordance with the provisions of Section 4(g), including filing fees and the reasonable fees and disbursements of counsel to the Underwriters in connection therewith and in connection with the preparation of any Blue Sky survey and any legal
investment survey;
(f) The printing and delivery to the Underwriters, in quantities
as hereinabove stated, of copies of the Registration Statement and any amendments thereto and of the General Disclosure Package, each preliminary prospectus and the Prospectus and any amendments or supplements thereto relating to the Notes, and the
delivery by the Underwriters of the General Disclosure Package, each preliminary prospectus and the Prospectus and any amendments or supplements thereto, in each case as they relate to the Notes or to sales or solicitations of offers to purchase
the Notes prior to the Offering Termination Notice Time;
| (g) |
The preparation, printing and delivery to the Underwriters of copies of the Indenture; and
|
| (h) |
Any fees charged by rating agencies for the rating of the Notes.
|
If this Agreement is terminated pursuant to any of the provisions of this Agreement (otherwise than by notice given by the Underwriters in connection with
the occurrence of any event set forth in clauses (ii) through (iv) of Section 10(a) or pursuant to Section 11), the Company will reimburse the Underwriters for all of their out-of- pocket expenses, including the reasonable fees and disbursements of
counsel for the Underwriters, incurred in connection with this Agreement and the offering of the Notes contemplated hereby.
SECTION 6. Conditions of Underwriters’ Obligations.
The obligations of the Underwriters hereunder are subject to the accuracy of the representations and warranties on the part of the Company herein and the
accuracy of the statements of the Company’s officers made in any certificate furnished pursuant to the provisions of this Agreement, to the performance and observance by the Company of all covenants and agreements herein contained on its part to be
performed and observed and to the following additional conditions precedent:
(a) Registration Statement and
Prospectus. The Registration Statement and any post-effective amendments thereto will have become effective under the 1933 Act and at the Closing Time, no stop order suspending the effectiveness of the Registration Statement will have been
issued and no proceedings for that purpose will be instituted, or to the knowledge of the Company or the Underwriters, will have been threatened or contemplated by the Commission; and no stop order suspending the sale of the Notes in any
jurisdiction designated by the Underwriters pursuant to Section 4(g) of this Agreement will have been issued and no proceedings for that purpose will have been instituted, or to the knowledge of the Company or the Underwriters, will have been
threatened or will be contemplated. The Final Term Sheet and the Prospectus referred to in Section 4(h) of this Agreement will have been transmitted to the Commission for filing pursuant to Rule 433 and Rule 424(b) (without reliance on Rule
424(b)(8)), respectively, of the 1933 Act Regulations within the prescribed time period, and prior to Closing Time the Company will have provided evidence satisfactory to the Underwriters of such timely filing, and all requests of the
Representatives for additional information will have been complied with to the reasonable satisfaction of the Representatives.
(b) Opinion of Company Counsel.
The Underwriters will have received (i) an opinion from the Associate General Counsel or Deputy General Counsel for the Company, dated as of the Closing Time and in form and substance satisfactory to counsel for the Underwriters, to the effect set
forth in Exhibit A (and including customary qualifications, assumptions and limitations), and (ii) an opinion from Cravath, Swaine & Xxxxx LLP, dated as of the Closing Time and in form and substance satisfactory to counsel for the Underwriters,
to the effect set forth in Exhibit B (and including customary qualifications, assumptions and limitations).
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(c) Opinion of Underwriters’
Counsel. The Underwriters will have received an opinion from Weil, Gotshal & Xxxxxx LLP, counsel to the Underwriters, dated as of the Closing Time and in form and substance satisfactory to the Representatives.
(d) Officer’s Certificate.
Except as contemplated in the Prospectus and the General Disclosure Package or reflected therein by the filing of any amendment or supplement thereto or any Incorporated Document, at the Closing Time, there will not have been, since the date of the
most recent consolidated financial statements included or incorporated by reference in the Prospectus or the General Disclosure Package, any material adverse change, or any development that is reasonably likely to result in a material adverse
change, in the consolidated financial condition or consolidated results of operations of the Company and its subsidiaries, taken as a whole. The Underwriters will have received a certificate signed by an officer of the Company, dated as of the
Closing Time, to the effect that (i) there has been no such material adverse change, (ii) the representations and warranties of the Company contained in Section 1 (other than Section 1(j)) are true and correct with the same force and effect as
though expressly made at and as of the date of such certificate, (iii) that the Company has complied with all agreements and satisfied all conditions required by this Agreement or the Indenture on its part to be performed or satisfied at or prior
to the date of such certificate and (iv) (x) no stop order suspending the effectiveness of the Registration Statement has been issued under the 1933 Act, (y) to the knowledge of such officer, the Registration Statement is not the subject of a
pending proceeding or examination under Section 8(d) or 8(e) of the 1933 Act and the Company is not the subject of a pending proceeding under Section 8A of the 1933 Act in connection with the offering of the Notes and (z) to the knowledge of such
officer, no proceedings for any of the foregoing purposes have been instituted or are pending or are contemplated by the Commission.
(e) Comfort Letter. On
the date of this Agreement, the Underwriters will have received a letter from the Company’s independent registered public accounting firm and Anadarko’s independent registered public accounting firm, each dated as of the date of this Agreement and
each in form and substance satisfactory to the Representatives, containing statements and information of a type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial
information contained or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus; and, if financial statements for any assets, business or entity acquired by the Company or by Anadarko, as
applicable, are included or incorporated by reference in the Registration Statement, the General Disclosure Package or the Prospectus, the Underwriters will have received a similar “comfort letter” from an independent registered public accounting
firm, dated as of the date of this Agreement and in form and substance satisfactory to the Representatives, with respect to such financial statements and any financial information with respect to such assets, business or entity, as the case may be,
contained or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus.
(f) Subsequent Delivery of
Comfort Letter. At the Closing Time, the Underwriters will have received from each independent registered public accounting firm which delivered a letter pursuant to subsection 6(e), a letter, dated as of the Closing Time, to the effect
that they reaffirm the statements made in the letter furnished pursuant to subsection 6(e), except that the specified date referred to will be a date not more than three days prior to the Closing Time.
(g) Reserve Letter. On
the date of this Agreement, the Underwriters will have received a letter from the Company’s independent petroleum consultant and Anadarko’s independent petroleum consultant, each dated as of the date of this Agreement and each in form and substance
satisfactory to the Representatives, with respect to the reserve information of the Company contained or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus.
(h) Subsequent Delivery of
Reserve Letter. At the Closing Time, the Underwriters will have received from each independent petroleum consultant which delivered a letter pursuant to subsection 6(g), a letter, dated as of the Closing Time, to the effect that they
reaffirm the statements made in the letter furnished pursuant to subsection 6(g).
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(i) Other Documents. At
the Closing Time, counsel for the Underwriters will have been furnished with such documents as such counsel may reasonably require for the purpose of enabling such counsel to pass upon the issuance and sale of the Notes as herein contemplated and
supporting proceedings, or in order to evidence the accuracy and completeness of any of the representations and warranties, or the fulfillment of any of the conditions, contained in this Agreement.
If any condition specified in this Section 6 remains unfulfilled when and as required to be fulfilled, this Agreement may be terminated by the
Representatives by notice to the Company at any time at or prior to the Closing Time, and any such termination will be without liability of any party to any other party, except that the acknowledgements and agreements in Section 2(c), the provisions
of Section 5, the indemnity and contribution agreements set forth in Sections 7 and 8 and the provisions of Section 15 will remain in effect.
SECTION 7. Indemnification.
(a) Indemnification of the
Underwriters. The Company agrees to indemnify and hold harmless each Underwriter, each officer and director of each Underwriter and each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act as
follows:
(i) against any and all loss, liability, claim, damage and
expense whatsoever (including, subject to the limitations set forth in subsection 7(c), the reasonable fees and disbursements of counsel chosen by the Representatives), as incurred, insofar as such loss, liability, claim, damage or expense arises
out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), or the omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading, or arises out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the General Disclosure Package, any
Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
(ii) against any and all loss, liability, claim, damage and
expense whatsoever (including, subject to the limitations set forth in subsection 7(c), the reasonable fees and disbursements of counsel chosen by the Representatives), as incurred, to the extent of the aggregate amount paid in settlement of any
litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever, insofar as such loss, liability, claim, damage or expense arises out of or based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of the Company; and
(iii) against any and all expense whatsoever (including, subject
to the limitations set forth in subsection 7(c), the reasonable fees and disbursements of counsel chosen by the Representatives), as incurred, reasonably incurred in investigating, preparing or defending against any litigation, or investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever, based upon any such untrue statement or omission, or any such alleged untrue statement or omission;
provided, however, that this indemnity will not apply to any loss, liability, claim, damage or expense (A) to the extent arising out
of or based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon the Form T-1 under the 1939 Act filed as an exhibit to the Registration Statement; or (B) as to which such Underwriter may be required to
indemnify the Company pursuant to the provisions of subsection (b) of this Section 7.
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(b) Indemnification of the
Company. Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company, its directors, each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection 7(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Registration Statement, any preliminary prospectus, the General Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in
conformity with written information furnished to the Company by or on behalf of such Underwriter through the Representatives expressly for use in the Registration Statement, such preliminary prospectus, the General Disclosure Package, such Issuer
Free Writing Prospectus or the Prospectus (or such amendment or supplement). The Company hereby acknowledges that the only information that the Underwriters have furnished to the Company by or on behalf of such Underwriter through the
Representatives expressly for use in the Registration Statement, such preliminary prospectus, the General Disclosure Package, such Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) are: (i) the information in
the third and fourth paragraphs under the caption “Underwriting” in the preliminary prospectus supplement and the Final Prospectus Supplement, but solely insofar as it concerns the terms of the offering by the Underwriters; (ii) the information in
the third sentence of the seventh paragraph under the caption “Underwriting” in the preliminary prospectus supplement and the Final Prospectus Supplement, but solely insofar as it concerns market making by the Underwriters; (iii) the information in
the eighth paragraph under the caption “Underwriting” in the preliminary prospectus supplement and the Final Prospectus Supplement, but solely insofar as it concerns stabilization transactions by the Underwriters; and (iv) the information in the
fourteenth paragraph under the caption “Underwriting” in the Final Prospectus Supplement.
(c) General. (i) In case
any action, suit or proceeding (including any governmental or regulatory investigation or proceeding) is brought against any Underwriter, any officer or director of such Underwriter or any person controlling such Underwriter, based upon the
Registration Statement, any preliminary prospectus, the General Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) and with respect to which indemnity may be sought against the Company
pursuant to this Section 7, such Underwriter, officer, director or controlling person will promptly notify the Company in writing, and the Company will assume the defense thereof, including the employment of counsel reasonably satisfactory to the
Representatives and payment of all expenses. Failure to give such notice will not relieve the Company from any liability under this Section 7 to the extent it is not materially prejudiced as a result thereof and in any event will not relieve it
from any liability which it may have otherwise than on account of the indemnity contained in this Section 7. Any such Underwriter, any such officer or director or any such controlling person will have the right to employ separate counsel in any
such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such separate counsel will be at the expense of such Underwriter, such officer or director or such controlling person, unless (A) the employment
of such counsel has been specifically authorized in writing by the Company, (B) the Company has failed to assume the defense and employ reasonably satisfactory counsel or (C) the named parties to any such action, suit or proceeding (including any
impleaded parties) include such Underwriter, such officer or director or such controlling person and the Company, and such Underwriter, such officer or director or such controlling person has been advised by such counsel that there may be one or
more legal defenses available to it that are different from, or additional to, those available to the Company (in which case, if such Underwriter, such officer or director or such controlling person notifies the Company in writing that it elects to
employ separate counsel at the expense of the Company, the Company will not have the right to assume the defense of such action, suit or proceeding on behalf of such Underwriter, such officer or director or such controlling person, it being
understood, however, that the Company will not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the
fees and expenses of more than one separate firm of attorneys (in addition to one separate firm of attorneys acting as local counsel in each relevant jurisdiction) for all such Underwriters, all such officers and directors and all such controlling
persons, which firm will be designated in writing by the Representatives, on behalf of all of such Underwriters, all such officers and directors and such controlling persons). An indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or
not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such claim, action,
suit or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
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(ii) In case any action, suit or proceeding (including any
governmental or regulatory investigation or proceeding) is brought against the Company, any of the Company’s directors or officers, or any person controlling the Company, with respect to which indemnity may be sought against any Underwriter
pursuant to this Section 7, such Underwriter will have the rights and duties given to the Company by subsection 7(c)(i) with respect thereto (provided that, notwithstanding the foregoing, any authorization of the nature specified in clause (A) of
subsection Section 7(c)(i) may be given only by the Representatives and copies of all notices given by the Company, any such officer or director or any such controlling person of the nature specified in such subsection 7(c)(i) will also be sent to
the Representatives), and the Company, such directors and officers and any such controlling persons will have the rights and duties given to the Underwriters by subsection 7(c)(i) with respect thereto, it being understood, however, that the
Underwriters will not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to one separate firm of attorneys acting as local counsel in each relevant jurisdiction) for the Company, all such officers and directors and all such controlling persons, which firm will be
designated in writing by the Company, on behalf of the Company, all such officers and directors and such controlling persons.
SECTION 8. Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnity agreement provided for in Section 7 is for any reason held
to be unenforceable with respect to the indemnified parties, although applicable in accordance with its terms, the Company and the Underwriters will contribute to the aggregate losses, liabilities, claims, damages and expenses of the nature
contemplated by said indemnity agreement incurred by the Company and the Underwriters, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Underwriters, on the other
hand, from the offering of the Notes or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the Company, on the one hand, and of the Underwriters, on the other hand, in connection with the statements or omissions that resulted in such losses, liabilities, claims, damages and expenses. The relative benefits received by
the Company, on the one hand, and the Underwriters, on the other hand, will be deemed to be in the same proportions as the total net proceeds from the sale of the Notes (before deducting expenses) received by the Company, on the one hand, and the
total underwriting discounts and commissions received by the Underwriters, on the other hand, bear to the total price to public of the Notes as set forth in the table on the cover page of the Prospectus. The relative fault of the Company, on the one
hand, and the Underwriters, on the other hand, will be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Underwriters’ respective obligations to contribute
pursuant to this Section 8 are several in proportion to the respective principal amounts of Notes set forth opposite their names in Schedule A, and not joint. Notwithstanding the provisions of this Section 8, no Underwriter will be required
to contribute any amount in excess of the amount by which the total price at which the Notes underwritten by it and distributed by the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) will be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each officer and director of an Underwriter and each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act will
have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the
1933 Act will have the same rights to contribution as the Company. Any party entitled to contribution hereunder will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim
for contribution may be made against another party or parties under this Section 8, notify such party or parties from whom contribution may be sought (with, in the case of any notice given by the Company or any of its officers, directors or
controlling persons, a copy to the Representatives), but the omission to so notify such party or parties will not relieve the party or parties from whom contribution may be sought from any obligation under this Section 8 to the extent it or they are
not materially prejudiced as a result thereof and in any event will not relieve it or them from any other obligation it or they may have otherwise than under this Section 8.
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SECTION 9. Representations, Warranties and
Agreements to Survive Delivery.
All representations, warranties and agreements contained in this Agreement (including, without limitation, the provisions of Sections 7 and 8), or contained
in certificates signed by any officer of the Company and delivered to the Underwriters, the Representatives or counsel for the Underwriters in connection with the transactions contemplated in this Agreement, will remain operative and in full force
and effect, regardless of any investigation made by or on behalf of any Underwriter, any officer or director of any Underwriter or any controlling person of any Underwriter, or by or on behalf of the Company, and will survive delivery of and payment
for any of the Notes.
SECTION 10. Termination.
(a) The Representatives may terminate this Agreement, by notice to
the Company, at any time at or prior to the Closing Time if between the date of this Agreement and the Closing Time:
(i) there has been any material adverse change in the
consolidated financial condition of the Company and its subsidiaries, taken as a whole,
(ii) there has occurred any material adverse change in the
financial markets in the United States or any outbreak or escalation of hostilities or other national or international calamity or crisis, in each case set forth in this clause (ii) the effect of which, individually or in the aggregate, shall be
such as to make it, in the reasonable judgment of the Representatives, impracticable to proceed with the offering, sale or delivery of the Notes or to enforce contracts for sale of the Notes,
(iii) trading in any securities of the Company has been suspended
by the Commission or a national securities exchange in the United States, or if trading generally on the New York Stock Exchange has been suspended or settlement has been materially disrupted, or minimum or maximum prices for trading have been
fixed, or maximum ranges for prices for securities have been required, by said exchange or by order of the Commission or any other governmental authority, or if a banking moratorium has been declared by either Federal or New York authorities, or
(iv) any of Standard & Poor’s Financial Services LLC and
Xxxxx’x Investors Service, Inc. (or any of their respective successors) has publicly announced that it has (A) placed the Notes or the Company’s unsecured senior long term debt generally on what is commonly termed a “watch list” for possible
downgrading or (B) downgraded the Notes or the Company’s unsecured senior long term debt generally.
(b) If this Agreement is terminated pursuant to this Section, such
termination will be without liability of any party to any other party except as provided in Section 5.
SECTION 11. Default by One or More of the
Underwriters.
If one or more of the Underwriters fails at the Closing Time to purchase the Notes which it or they are obligated to purchase under this Agreement (the
“Defaulted Notes”), the non-defaulting Underwriters will have the right, within 24 hours thereafter, to make arrangements for one or more of such non-defaulting Underwriters, or any other underwriters, to purchase all, but not less than all, of the
Defaulted Notes in such amounts as may be agreed upon and upon the terms herein set forth; provided, however, that if such non-defaulting Underwriters have not completed such arrangements within such 24-hour period, then:
(a) if the aggregate principal amount of Defaulted Notes does not
exceed 10% of the aggregate principal amount of the Notes, the non-defaulting Underwriters will be obligated to purchase the full amount thereof in the proportions that their respective underwriting obligations hereunder bear to the underwriting
obligations of all non-defaulting Underwriters, or
(b) if the aggregate principal amount of Defaulted Notes exceeds
10% of the aggregate principal amount of the Notes, this Agreement will terminate without liability on the part of any non-defaulting Underwriter or the Company, except that the acknowledgements and agreements in Section 2(c), the provisions of
Section 5, and the indemnity and contribution agreements set forth in Sections 7 and 8 and the provisions of Section 15 will remain in effect.
17
No action pursuant to this Section will relieve any defaulting Underwriter from liability in respect of its default.
In the event of any such default which does not result in a termination of this Agreement, either the Representatives or the Company will have the right to
postpone the Closing Time for a period not exceeding seven days in order to effect any required changes in the Registration Statement or Prospectus or in any other documents or arrangements. The term “Underwriter”
as used in this Agreement will include any underwriter substituted for a defaulting Underwriter.
SECTION 12. Notices.
All notices and other communications under this Agreement must be in writing and will be deemed to have been duly given if mailed or transmitted by any
standard form of telecommunication or, in the case of an Offering Termination Notice, if given to the Company by e-mail which is not returned undeliverable. Notices to the Underwriters and the Representatives must be directed to them at X.X. Xxxxxx
Securities LLC, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxx Xxxxxxxxxxx (fax: 000-000-0000); MUFG Securities Americas Inc. at 1221 Avenue of the Americas, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attn: Capital Markets Group, facsimile:
(000) 000-0000; RBC Capital Markets, LLC, 200 Xxxxx Street, 10th Floor, New York, New York 10281, Attn: US Leveraged Finance, toll free: (000) 000-0000, collect: (000) 000-0000; SMBC Nikko Securities America, Inc., 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: Debt Capital Markets, toll free: (000) 000-0000. Notices to the Company must be directed to it at 0 Xxxxxxxx Xxxxx, Xxxxx 000, Xxxxxxx, Xxxxx 00000, Attention: Vice President and Treasurer (fax: 000-000-0000; email:
xxx_xxxxxxx@xxx.xxx).
SECTION 13. Parties.
This Agreement will inure to the benefit of and be binding upon the Underwriters and the Company and their respective successors. Nothing expressed or
mentioned in this Agreement is intended or will be construed to give any person, firm or corporation, other than the parties hereto and their respective successors and the officers, directors and controlling persons referred to in Sections 7 and 8
and their heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provisions herein contained. This Agreement and all conditions and provisions of this Agreement are intended to be
for the sole and exclusive benefit of the parties hereto and their respective successors and said officers, directors and controlling persons and their heirs and legal representatives, and for the benefit of no other person, firm or corporation. No
purchaser of Notes will be deemed to be a successor by reason merely of such purchase.
SECTION 14. Recognition of the U.S. Special
Resolution Regimes.
(a) In the event that any Underwriter that is a Covered Entity
becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be
effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.
(b) In the event that any Underwriter that is a Covered Entity or
a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent
than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.
18
The terms which follow, when used in this Section 14, shall have the meanings indicated:
“BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be
interpreted in accordance with, 12 U.S.C. Sec. 1841(k).
“Covered Entity” means any of the following:
(i) a “covered entity” as that term is defined in, and interpreted in accordance
with, 12 C.F.R. Sec. 252.82(b);
(ii) a “covered bank” as that term is defined in, and interpreted in accordance
with, 12 C.F.R. Sec. 47.3(b); or
(iii) a “covered FSI” as that term is defined in, and interpreted in accordance
with, 12 C.F.R. Sec. 382.2(b).
“Default Right” has the meaning assigned to that term in, and shall be interpreted in
accordance with, 12 C.F.R. Sec.Sec. 252.81, 47.2 or 382.1, as applicable.
“U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the
regulations promulgated thereunder and (ii) Title II of the Xxxx-Xxxxx Xxxx Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
SECTION 15. Governing Law.
This Agreement and the rights and obligations of the parties created hereby will be governed by and construed in accordance with the laws of the State of
New York applicable to agreements made and to be performed in such State, including, without limitation, Section 5-1401 of the New York General Obligations Law.
SECTION 16. Contractual Recognition of Bail-In.
Notwithstanding any other term of this Agreement or any other agreements, arrangements or understanding between the Company and the Applicable Underwriter,
the Company acknowledges and accepts that a BRRD Liability arising under this Agreement may be subject to the exercise of Bail-in Powers by the Relevant Resolution Authority, and acknowledges, accepts and agrees to be bound by:
(a) the effect of the exercise of Bail-in Powers by the Relevant
Resolution Authority in relation to any BRRD Liability of the Applicable Underwriter to the Company under this Agreement, that (without limitation) may include and result in any of the following, or some combination thereof: (i) the reduction of
all, or a portion, of the BRRD Liability or outstanding amounts due thereon; (ii) the conversion of all, or a portion, of the BRRD Liability into shares, other securities or other obligations of the Applicable Underwriter or another person, and the
issue to or conferral on the Company of such shares, securities or obligations; (iii) the cancellation of the BRRD Liability; and (iv)the amendment or alteration of any interest, if applicable, thereon, the maturity or the dates on which any
payments are due, including by suspending payment for a temporary period; and
(b) the variation of the terms of this Agreement, as deemed
necessary by the Relevant Resolution Authority, to give effect to the exercise of Bail-in Powers by the Relevant Resolution Authority.
The terms which follow, when used in this Section 16, shall have the meanings indicated:
“Applicable Underwriter” means Standard Chartered Bank, as Underwriter.
“Bail-in Legislation” means in relation to a member state of the European Economic Area which
has implemented, or which at any time implements, the BRRD, the relevant implementing law, regulation, rule or requirement as described in the EU Bail-in Legislation Schedule from time to time.
19
“Bail-in Powers” means any Write-down and Conversion Powers as defined in the EU Bail-in Legislation Schedule, in
relation to the relevant Bail-in Legislation.
“BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions
and investment firms.
“BRRD Liability” means a liability in respect of which the relevant Write Down and Conversion Powers in the
applicable Bail-in Legislation may be exercised.
“EU Bail-in Legislation Schedule” means the document described as such, then in effect, and published by the Loan
Market Association (or any successor person) from time to time at xxxx://xxx.xxx.xx.xxx/.
“Relevant Resolution Authority” means the resolution authority with the ability to exercise any Bail-in Powers in
relation to the Applicable Underwriter.
SECTION 17. Counterparts.
This Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the
same agreement. The words “execution,” “signed,” “signature,” “delivery” and words of like import in or relating to this Agreement or any document to be signed in connection with this Agreement shall be deemed to include electronic signatures,
deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the
case may be, and the parties hereto consent to conduct the transactions contemplated hereunder by electronic means.
In accordance with the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law on October 26, 2001)), the Underwriters are
required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and addresses of their respective clients, as well as other information that will allow the
Underwriters to properly identify their respective clients.
[Signature Pages Follow]
20
If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart of this Agreement,
whereupon this instrument along with all counterparts will become a binding agreement between the Unde rwriters and the Company in accordance with its terms.
|
Very truly yours,
|
||
|
OCCIDENTAL PETROLEUM CORPORATION
|
||
|
By
|
/s/ Xxxxx Xxxxx
|
|
|
Name: Xxxxx Xxxxx
|
||
|
Title: Vice President and Treasurer
|
||
CONFIRMED AND ACCEPTED, as of the date first above written:
|
By:
|
X.X. XXXXXX SECURITIES LLC
|
|
|
By
|
/s/ Xxxx Xxxxxx
|
|
|
Name: Xxxx Xxxxxx
|
||
|
Title: Vice President
|
For themselves and as Representatives of the other Underwriters named in Schedule A.
[Signature Page to Underwriting Agreement]
|
By:
|
MUFG SECURITIES AMERICAS INC.
|
|
|
By
|
/s/ Xxxxx Xxxxx
|
|
|
Name: Xxxxx Xxxxx
|
||
|
Title: Managing Director
|
For themselves and as Representatives of the other Underwriters named in Schedule A.
[Signature Page to Underwriting Agreement]
|
By:
|
RBC CAPITAL MARKETS, LLC.
|
|
|
By
|
/s/ Xxxxx Xxxxxx
|
|
|
Name: Xxxxx Xxxxxx
|
||
|
Title: Managing Director
|
For themselves and as Representatives of the other Underwriters named in Schedule A.
[Signature Page to Underwriting Agreement]
|
By:
|
SMBC NIKKO SECURITIES AMERICA, INC.
|
|
|
By
|
/s/ Xxxxxxxx Xxxxxx
|
|
|
Name: Xxxxxxxx Xxxxxx
|
||
|
Title: Managing Director
|
For themselves and as Representatives of the other Underwriters named in Schedule A.
[Signature Page to Underwriting Agreement]
SCHEDULE A
|
Name of Underwriter
|
Principal Amount of
2025 Notes
|
Principal Amount of
2028 Notes
|
Principal Amount of
2030 Notes
|
|||
|
X.X. Xxxxxx Securities LLC
|
$189,000,000
|
$126,000,000
|
$315,000,000
|
|||
|
RBC Capital Markets, LLC
|
$94,500,000
|
$63,000,000
|
$157,500,000
|
|||
|
MUFG Securities Americas Inc.
|
$72,000,000
|
$48,000,000
|
$120,000,000
|
|||
|
SMBC Nikko Securities America, Inc.
|
$72,000,000
|
$48,000,000
|
$120,000,000
|
|||
|
Barclays Capital Inc.
|
$45,000,000
|
$30,000,000
|
$75,000,000
|
|||
|
BofA Securities, Inc.
|
$45,000,000
|
$30,000,000
|
$75,000,000
|
|||
|
Citigroup Global Markets Inc.
|
$45,000,000
|
$30,000,000
|
$75,000,000
|
|||
|
HSBC Securities (USA) Inc.
|
$45,000,000
|
$30,000,000
|
$75,000,000
|
|||
|
SG Americas Securities, LLC
|
$45,000,000
|
$30,000,000
|
$75,000,000
|
|||
|
Xxxxx Fargo Securities, LLC
|
$45,000,000
|
$30,000,000
|
$75,000,000
|
|||
|
BBVA Securities Inc.
|
$22,500,000
|
$15,000,000
|
$37,500,000
|
|||
|
Credit Suisse Securities (USA) LLC
|
$22,500,000
|
$15,000,000
|
$37,500,000
|
|||
|
PNC Capital Markets LLC
|
$22,500,000
|
$15,000,000
|
$37,500,000
|
|||
|
Scotia Capital (USA) Inc.
|
$22,500,000
|
$15,000,000
|
$37,500,000
|
|||
|
Standard Chartered Bank
|
$22,500,000
|
$15,000,000
|
$37,500,000
|
|||
|
TD Securities (USA) LLC
|
$22,500,000
|
$15,000,000
|
$37,500,000
|
|||
|
BNP Paribas Securities Corp.
|
$13,500,000
|
$9,000,000
|
$22,500,000
|
|||
|
CIBC World Markets Corp.
|
$13,500,000
|
$9,000,000
|
$22,500,000
|
|||
|
Credit Agricole Securities (USA) Inc.
|
$13,500,000
|
$9,000,000
|
$22,500,000
|
|||
|
Mizuho Securities USA LLC
|
$13,500,000
|
$9,000,000
|
$22,500,000
|
|||
|
U.S. Bancorp Investments, Inc.
|
$13,500,000
|
$9,000,000
|
$22,500,000
|
|||
|
Total
|
$900,000,000
|
$600,000,000
|
$1,500,000,000
|
Sch. A-1
SCHEDULE B
Issuer Free Writing Prospectus
Filed Pursuant to Rule 433
Registration No. 333-232928
Relating to the Preliminary Prospectus Supplement dated August 12, 2020
Occidental Petroleum Corporation
Pricing Term Sheet
August 12, 2020
$900,000,000 5.875% Senior Notes due 2025
$600,000,000 6.375% Senior Notes due 2028
$1,500,000,000 6.625% Senior Notes due 2030
|
Issuer:
|
Occidental Petroleum Corporation (the “Company”)
|
|
Trade Date:
|
August 12, 2020
|
|
Settlement Date*:
|
August 26, 2020 (T+10)
|
|
Title:
|
5.875% Senior Notes due 2025 (the “2025 Notes”)
|
|
6.375% Senior Notes due 2028 (the “2028 Notes”)
|
|
|
6.625% Senior Notes due 2030 (the “2030 Notes”)
|
|
|
Expected Ratings
|
|
|
(Xxxxx’x/S&P/Fitch)**:
|
Ba2/BB+/BB
|
|
Principal Amount:
|
2025 Notes: $900,000,000
|
| 2028 Notes: $600,000,000 | |
|
2030 Notes: $1,500,000,000
|
|
|
Maturity Date:
|
2025 Notes: September 1, 2025
|
|
2028 Notes: September 1, 2028
|
|
|
2030 Notes: September 1, 2030
|
|
|
Interest Payment Dates:
|
2025 Notes: Semi-annually on September 1 and March 1, commencing March 1, 2021
|
|
2028 Notes: Semi-annually on September 1 and March 1, commencing March 1, 2021
|
|
|
2030 Notes: Semi-annually on September 1 and March 1, commencing March 1, 2021
|
|
|
Record Dates:
|
2025 Notes: August 15 and February 15
|
| 2028 Notes: August 15 and February 15 |
|
| 2030 Notes: August 15 and February 15 |
|
|
Coupon:
|
2025 Notes: 5.875% per annum
|
|
2028 Notes: 6.375% per annum
|
|
|
2030 Notes: 6.625% per annum
|
|
|
Benchmark Treasury:
|
2025 Notes: UST 0.25% due July 31, 2025
|
|
2028 Notes: UST 2.875% due August 15, 2028
|
|
|
2030 Notes: UST 0.625% due May 15, 2030
|
|
|
Spread to Benchmark Treasury:
|
2025 Notes: T + 558 bps
|
|
2028 Notes: T + 581 bps
|
|
|
2030 Notes: T + 595 bps
|
Sch. B-1
|
Initial Price to Public:
|
2025 Notes: 100.000%
|
|
|
2028 Notes: 100.000%
|
||
|
2030 Notes: 100.000%
|
||
|
Optional Redemption Provisions:
|
||
|
2025 Notes:
|
Make-Whole Call: UST + 50 bps Par Call: On or after June 1, 2025
|
|
|
2028 Notes:
|
Make-Whole Call: UST + 50 bps Par Call: On or after March 1, 2028
|
|
|
2030 Notes:
|
Make-Whole Call: UST + 50 bps Par Call: On or after Xxxxx 0, 0000
|
|
|
XXXXX / XXXX:
|
2025 Notes: 000000XX0 / US674599EB77
|
|
|
2028 Notes: 000000XX0 / US674599EC50
|
||
|
2030 Notes: 000000XX0 / US674599ED34
|
||
|
Joint Active Book-Running Managers:
|
X.X. Xxxxxx Securities LLC
|
|
|
RBC Capital Markets, LLC
|
||
|
MUFG Securities Americas Inc.
|
||
|
SMBC Nikko Securities America, Inc.
|
||
|
Joint Book-Running Managers:
|
BofA Securities, Inc.
|
|
|
Barclays Capital Inc.
|
||
|
Citigroup Global Markets Inc.
|
||
|
HSBC Securities (USA) Inc.
|
||
|
SG Americas Securities,
|
||
|
LLC Xxxxx Fargo Securities, LLC
|
||
|
Senior Co-Managers:
|
BBVA Securities Inc.
|
|
|
Credit Suisse Securities (USA) LLC
|
||
|
PNC Capital Markets LLC
|
||
|
Scotia Capital (USA) Inc.
|
||
|
Standard Chartered Bank
|
||
|
TD Securities (USA) LLC
|
||
|
Co-Managers:
|
BNP Paribas Securities Corp.
|
|
|
CIBC World Markets Corp.
|
||
|
Credit Agricole Securities (USA)
|
||
|
Inc. Mizuho Securities USA LLC
|
||
|
U.S. Bancorp Investments, Inc.
|
||
*We expect that delivery of the notes will be made against payment therefor on or about August 26, 2020, which will be the tenth business day following the date of pricing
of the notes (this settlement cycle being referred to as “T+10”). Pursuant to Rule 15c6-1 under the Exchange Act, trades in the secondary market generally are required to settle in two business days, unless the parties to that trade expressly agree
otherwise. Accordingly, purchasers who wish to trade the notes on the date of this term sheet or the following seven business days will be required, by virtue of the fact that the notes initially will settle in T+10, to specify an alternate
settlement cycle at the time of any such trade to prevent a failed settlement. Purchasers of notes should consult their own advisors.
Sch. B-2
**Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. See “Risk Factors—Risks
Related to the Notes—Our credit ratings may not reflect all risks of an investment in the notes and there is no protection in the indenture for holders of the notes in the event of a ratings downgrade. A downgrade in our credit rating could
negatively impact our cost of and ability to access capital.” in the Company’s preliminary prospectus supplement dated August 12, 2020.
Changes to the Preliminary Prospectus Supplement
Under the heading “Prospectus Supplement Summary—Liquidity and Maturity Profile” on page S-3 of the preliminary prospectus supplement, (a) all amounts and calculations
relating to, or derived from, the aggregate principal amount of the notes and the application of the net proceeds from the offering are hereby updated to reflect that the aggregate principal amount of the notes to be issued in the offering is $3,000
million and (b) appropriate conforming changes are hereby made to give effect to clause (a) and as otherwise may be required to reflect the terms described in this pricing term sheet.
****
The Company has filed a registration statement (including a prospectus) and a related preliminary prospectus supplement with the U.S. Securities and Exchange Commission
(“SEC”) for the offering to which this communication relates. Before you invest, you should read the preliminary prospectus supplement, the accompanying prospectus in that registration statement and other documents the Company has filed with the SEC
for more complete information about the Company and this offering. You may get these documents for free by visiting XXXXX on the SEC website at xxx.xxx.xxx. Alternatively, the Company, any underwriter or any dealer participating in the offering will
arrange to send you the prospectus and the related preliminary prospectus supplement if you request it by calling X.X. Xxxxxx Securities LLC toll-free at 0-000-000-0000, RBC Capital Markets LLC collect at 0-000-000-0000, MUFG Securities Americas
Inc. toll-free at (000) 000-0000 or collect at (000) 000-0000 or SMBC Nikko Securities America, Inc. toll-free at (000) 000-0000 or collect at (000) 000-0000.
This pricing term sheet supplements, and should be read in conjunction with, the Company’s preliminary prospectus supplement dated August 12, 2020 and the accompanying
prospectus dated July 31, 2019 and the documents incorporated by reference therein.
Any legends, disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded. Such legends, disclaimers or other
notices have been automatically generated as a result of this communication having been sent via Bloomberg or another system.
Sch. B-3
SCHEDULE C
Issuer General Use Free Writing Prospectuses
| 1. |
Final Term Sheet Dated August 12, 2020.
|
Sch. C-1
EXHIBIT A
Form of Opinion of Associate General Counsel or Deputy General Counsel
[redacted]
Ex. A-1
EXHIBIT B
Form of Opinion of Cravath, Swaine & Xxxxx LLP
[redacted]
Ex. B-1
