Each one in plain English, with the numbers worked through for a shareholder.
30 Jan 2024debt financing● NeutralMajor
On January 30, 2024 parent APA Corporation signed a credit agreement with lenders (JPMorgan Chase as agent) for $2.0 billion of delayed-draw term loans ($1.5 billion due 3 years after closing, $500 million due 364 days after closing). The money can only be used to refinance debt of Callon Petroleum, which APA has agreed to acquire under a January 3, 2024 merger agreement; Apache guarantees the loans until its own senior notes and debentures fall below $1.0 billion. No loans are drawn yet: they are available only when the Callon deal closes and conditions are met.
On December 13, 2023 parent APA Corporation set up a commercial paper program of up to $1.8 billion in short-term notes (maturities up to 397 days), and Apache guarantees them until its own senior notes and debentures outstanding fall below US$1.0 billion. No notes had been issued yet. The filing does not say it replaces anything.
On April 29, 2022 Apache, a wholly owned subsidiary of APA Corporation, guaranteed two new five-year APA credit agreements (US$1.8 billion and £1.5 billion, due April 29, 2027) and terminated its US$4.0 billion March 2018 facility. US$680 million of borrowings under the old facility moved to APA's USD facility, under which Apache may borrow up to US$300 million.
On August 3, 2020 Apache agreed to sell $500 million of 4.625% notes due 2025 and $750 million of 4.875% notes due 2027 through J.P. Morgan, with closing expected August 17, 2020 and about $1.234 billion of net proceeds. This adds to the debt raised in 2018 and 2019 under the same indenture; the filing does not state the use of proceeds.
On May 26, 2020 Apache's board approved removing its common stock from the NYSE and Chicago Stock Exchange while keeping the Nasdaq listing, saying the cost savings serve the company and its stockholders. Shares stay tradable on Nasdaq; this is a voluntary move, not a compliance failure.
On June 5, 2019 Apache agreed to sell $600 million of 4.250% notes due 2030 and $400 million of 5.350% notes due 2049, with closing expected June 19, 2019 and about $986.7 million of net proceeds. Like the 2018 offering, these are issued under the August 2018 indenture with Wells Fargo as trustee; the filing does not state the use of proceeds.
On August 14, 2018 Apache agreed to sell $1.0 billion of 4.375% notes due 2028 through underwriters led by Credit Suisse, J.P. Morgan and Merrill Lynch, with closing expected August 23, 2018 and about $989.3 million of net proceeds. The filing does not say what the money will be used for.
On March 14, 2018 Apache signed a new five-year, US$4.0 billion revolving credit agreement (maturing March 14, 2023, extendable) led by JPMorgan Chase, and ended its two older facilities (US$3.5 billion and £900.0 million of commitments). Letters of credit of about £129.1 million carried over to the new facility; it supports the $3.5 billion commercial paper program.
