APA Corp Enters Purchase Agreement for Senior Notes – $839 Million Net Proceeds Reported

APA Corp (NASDAQ:APA) has recently announced its entry into a Purchase Agreement for senior notes. The agreement, dated January 7, 2025, involves the sale and purchase of $350,000,000 aggregate principal amount of 6.10% Notes due 2035 and $500,000,000 aggregate principal amount of 6.75% Notes due 2055. The sale, which closed on January 10, 2025, generated net proceeds of approximately $839 million.

The terms of the Notes are governed by the Indenture dated December 11, 2024, between APA Corp and Regions Bank. These Notes are fully guaranteed by Apache until a specified threshold is met. Additionally, the company used the proceeds to fund the purchase of Apache Tender Notes.

In connection with the issuance, APA Corp also entered into a Registration Rights Agreement. This Agreement aims to register an offer to exchange each series of the Notes for registered notes issued by the company. Failure to complete these exchange offers will result in the accrual of additional interest.

Moreover, on January 10, 2025, the company settled previously announced Exchange and Tender Offers. The Exchange Offers included various outstanding Apache Notes exchanged for new APA Exchange Notes. As part of the Offers, a significant amount of Apache Notes were tendered and accepted, with the respective amounts being exchanged or tendered.

All these financial moves were made in accordance with agreements and inducements outlined in various documents filed by the company. While this summary captures the key actions taken by APA Corp, investors and security holders are encouraged to refer to the full texts of the agreements for comprehensive understanding of the terms and conditions.

The company also disclosed the remaining outstanding Apache Notes post the Offers. These notes were solicited for consents to amend the applicable Apache Indenture, which received approvals from the holders. This resulted in supplemental indentures coming into effect.

APA Corp, through these financial dealings, has taken substantial steps to reshape its financial structure and liabilities. These actions are pivotal in ensuring financial stability and growth for the company amidst changing market dynamics.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read APA’s 8K filing here.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally.