FINANCING / CanOxy offers preferreds
CanadianOxy to Offer US $125 Million of Preferred Securities
CALGARY, Oct. 22 /CNW/ - Canadian Occidental Petroleum Ltd.
(''CanadianOxy'') announced today that it has filed a preliminary prospectus
with the Alberta Securities Commission and a registration statement with the
United States Securities and Exchange Commission (''SEC'') for a US $125
million offering of US $25 principal amount preferred securities
(''Securities''). These Securities represent junior subordinated debentures
with a term of 49 years and will be redeemable by CanadianOxy after 5 years.
The Securities will be sold only in the United States. Final terms of the
offering will be set on the filing of the supplemented final prospectus.
Net proceeds from the offering will be used to repay indebtedness under
the Company's unsecured syndicated term credit facilities. In accordance with
Canadian generally accepted accounting principles, the Securities will be
accounted for as equity on CanadianOxy's balance sheet.
The offering is being underwritten by a syndicate lead managed by Merrill
Lynch & Co.
A copy of the preliminary prospectus relating to these securities may be
obtained from:
Merrill Lynch & Co.
World Financial Center
North Tower, 250 Vesey Street
New York, New York, U.S.A. 10281
Attention: Syndicate Operations
Phone: 212-449-6500
A registration statement relating to the Securities has been filed with
the SEC but has not yet become effective. The Securities may not be sold nor
may offers to buy be accepted prior to the time the registration statement
becomes effective. This press release does not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any offer of the
Securities in any State or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities law of any such State or other jurisdiction.
CanadianOxy is an independent, Canadian-based global energy and chemicals
company. Core business activities include the exploration, development,
production and marketing of crude oil and natural gas, and the manufacturing
and marketing of industrial chemicals. CanadianOxy is one of Canada's largest
oil and gas producers with a daily output of approximately 240,000 barrels of
oil equivalent.
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For further information: Marvin F. Romanow, Vice-President and Chief
Financial Officer, Canadian Occidental Petroleum Ltd., (403) 234-6771 or Una
Power, Manager, Investor Relations, Canadian Occidental Petroleum Ltd., (403)
234-6994
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