In a separate announcement Tuesday, Apache also said it would a public offering of 21 million shares and a separate public offering of $1.1 billion mandatory convertible preferred stock consisting of 22 million depositary shares.Underwriters will get up to 3.15 million shares and up to 3.3 million additional depositary shares to cover any over-allotments. Goldman, Sachs & Co., BofA Merrill Lynch, Citi and J.P. Morgan will act as joint book-running managers for the offerings. Copyright 2010 American City Business Journals http://houston.bizjournals.com/houston/stories/2010/07/19/daily19.html?ana=thestreet
By Houston Business Journal earlier this month that Apache was buying certain BP assets, including its stake in Alaskaâ¿¿s Prudhoe Bay oil field. Then on July 19, there were reports that negotiations regarding the Alaskan assets had stalled. The deal that Apache confirmed Tuesday did not include those Alaskan assets. As a part of the acquisition, Apache said it will advance $5 billion of the purchase price to BP on July 30, that will be applied to the purchase price at the time of closing. Financing for the acquisition will come in a combination of debt and equity securities as well as cash on hand. Apache has also obtained a $5 billion bridge loan facility to backstop any financing requirements. Earlier on Tuesday, it was reported that BP also plans to sell some assets in Vietnam and Pakistan to help pay for its $20 billion Gulf spill relief fund. In June, BP (NYSE: BP) said it would try to sell $10 billion in assets over the next year to help pay for the spill. So far the company has spent nearly $4 billion on spill cleanup.