Deals this week: Golar LNG Partners, Occidental Petroleum, Snam
Golar LNG Partners has announced the pricing of private placement of 2.75% convertible senior notes, due 15 February 2022. The company intends to raise $350m through the issue of notes with semi-annual payable interest.
Underwriters have a 30-day over-allotment option to buy up to an additional $52.5m aggregate principal amount of notes, which are convertible into common shares at a conversion rate of 26.5 shares per $1,000 principal amount of notes.
The amount raised from the offering is intended to be used by Golar to fund the cost of the initial capped call proceedings and for general corporate purposes.
The private placement is scheduled for completion on 17 February.
Occidental Petroleum Corporation plans to dispose approximately 180,000 acres located in South Texas, US, for approximately $500m, sources said.
The acreage is located in the deepest southern portion of the Texas-Mexico border, approximately 500mi (804.67km) away from the Permian activity.
The deal will allow Occidental to concentrate on the growth prospects in the Permian Basin.
Snam has raised $318.65m through the issue of floating rate notes, due 2022, in a private placement.
The notes bear a coupon rate equal to three-months Euro Interbank Offered Rate (Euribor) plus 0.60%, and have been issued under an $11.2bn euro medium-term notes programme.
Prairie Provident Resources has agreed to buy light oil assets located in the Greater Red Earth area of Northern Alberta, Canada.
The deal involves a cash consideration of $31.32m, which will be funded by Prairie through its revolving credit facility and a bought-deal equity funding scheme.
The assets have an average production rate of 1,100 barrels of oil equivalent a day (boed) and will increase Prairie’s production capacity to 6,500boed, upon completion of the transaction.
Prairie has appointed Mackie Research Capital Corporation as financial advisor for the transaction.
Scheduled for completion in March, the deal will enable Prairie to expand its operations in Alberta, Canada.
Through its subsidiary MPLX Pipe Line Holdings, MPLX has agreed to a $220m acquisition of Ozark Pipeline located in Oklahoma and Illinois, US, from Enbridge Pipelines (Ozark).
The 433mi (697km) Ozark pipeline has the capacity to transfer approximately 230,000 barrels of crude oil a day.
Upon completion of the deal, MPLX plans to expand the throughput of the pipeline to approximately 345,000 barrels of crude oil a day.
The transaction is scheduled for completion in the first quarter of this year.