LONG-TERM DEBT

12 Months Ended

Dec. 31, 2019

NOTE 7 - LONG-TERM DEBT

Long-term debt consisted of the following:



millions	December 31, 2019
4.850% senior notes due 2021		$	677
2.600% senior notes due 2021		1,500
4.100% senior notes due 2021		1,249
Variable rate bonds due 2021 (2.854% as of December 31, 2019)		500
Variable rate bonds due 2021 (3.151% as of December 31, 2019)		500
2-year variable rate Term Loan due 2021 (3.111% as of December 31, 2019)		1,956
2.700% senior notes due 2022		2,000
3.125% senior notes due 2022		814
2.600% senior notes due 2022		400
Variable rate bonds due 2022 (3.360% as of December 31, 2019)		1,500
2.700% senior notes due 2023		1,191
8.750% medium-term notes due 2023		22
2.900% senior notes due 2024		3,000
6.950% senior notes due 2024		650
3.450% senior notes due 2024		248
3.500% senior notes due 2025		750
5.550% senior notes due 2026		1,100
3.200% senior notes due 2026		1,000
3.400% senior notes due 2026		1,150
7.500% debentures due 2026		112
3.000% senior notes due 2027		750
7.125% debentures due 2027		150
7.000% debentures due 2027		48
6.625% debentures due 2028		14
7.150% debentures due 2028		235
7.200% senior debentures due 2028		82
7.200% debentures due 2029		135
7.950% debentures due 2029		116
8.450% senior debentures due 2029		116
3.500% senior notes due 2029		1,500
Variable rate bonds due 2030 (1.705% as of December 31, 2019)		68
7.500% senior notes due 2031		900
7.875% senior notes due 2031		500
6.450% senior notes due 2036		1,750
Zero Coupon senior notes due 2036		2,271
6.500% note payable to WES due 2038		260
4.300% senior notes due 2039		750
7.950% senior notes due 2039		325
6.200% senior notes due 2040		750
4.500% senior notes due 2044		625
4.625% senior notes due 2045		750
6.600% senior notes due 2046		1,100
4.400% senior notes due 2046		1,200
4.100% senior notes due 2047		750
4.200% senior notes due 2048		1,000
4.400% senior notes due 2049		750
7.730% debentures due 2096		60
7.500% debentures due 2096		78
7.250% debentures due 2096		49
Total borrowings at face value^(a)		37,401
Adjustments to book value:
Unamortized premium, net		914
Debt issuance costs		(125		)
Long-term finance leases		347
Long-term Debt, net		$	38,537


^(a)	Total borrowings at face value included a $310 thousand 7.25% senior note due 2025.



millions	December 31, 2018
Occidental
9.250% senior debentures due 2019		$	116
4.100% senior notes due 2021		1,249
3.125% senior notes due 2022		813
2.600% senior notes due 2022		400
2.700% senior notes due 2023		1,191
8.750% medium-term notes due 2023		22
3.500% senior notes due 2025		750
3.400% senior notes due 2026		1,150
3.000% senior notes due 2027		750
7.200% senior debentures due 2028		82
8.450% senior debentures due 2029		116
4.625% senior notes due 2045		750
4.400% senior notes due 2046		1,200
4.100% senior notes due 2047		750
4.200% senior notes due 2048		1,000
Variable rate bonds due 2030 (1.9% as of December 31, 2018)		68
Total borrowings at face value		10,407
Adjustments to book value:
Unamortized discount, net		(36		)
Debt issuance costs		(54		)
Current maturities		(116		)
Long-term Debt, net		$	10,201

DEBT ISSUED AND ASSUMED

On August 8, 2019, Occidental issued $13.0 billion of new senior unsecured notes, consisting of both floating and fixed rate debt. Occidental also borrowed under the Term Loans, which consist of: (1) a 364-day senior unsecured variable-rate term loan tranche of $4.4 billion and (2) a two-year senior unsecured variable-rate term loan tranche of $4.4 billion. In total, the $21.8 billion in debt issued was used to finance part of the cash portion of the purchase price for the Acquisition.

In the Acquisition, Occidental assumed Anadarko debt with an outstanding principal balance of $11.9 billion. In September 2019, Occidental completed its offers to exchange the Anadarko senior notes and debentures assumed as part of the Acquisition for notes of a corresponding series issued by Occidental and cash, and related solicitation of consents. Of the approximately $11.9 billion in aggregate principal amount of Anadarko senior notes and debentures offered in the exchange, 97%, or approximately $11.5 billion, were tendered and accepted in the exchange offers. The portion not exchanged, approximately $400 million, remains outstanding with the original terms.

DEBT REPAYMENT

In 2019, Occidental paid approximately $7.0 billion of long-term debt including a majority of the Term Loans using proceeds from assets sales and available cash.

REVOLVING CREDIT FACILITY

On June 3, 2019, Occidental entered into an amendment to its existing $3.0 billion revolving credit facility (Occidental RCF) pursuant to which, among other things, the commitments under the Occidental RCF were increased to $5.0 billion at the closing of the Acquisition. Borrowings under the Occidental RCF bear interest at various benchmark rates, including LIBOR, plus a margin based on Occidental’s senior debt ratings. The facility has similar terms to other debt agreements and does not contain material adverse change clauses or debt ratings triggers that could restrict Occidental’s ability to borrow, or that would permit lenders to terminate their commitments or accelerate debt repayment. The facility provides for the termination of loan commitments and requires immediate repayment of any outstanding amounts if certain events of default occur. Occidental has not drawn down any amounts under the Occidental RCF. In 2019, Occidental paid average annual facility fees of 0.11% on the total commitment amount.

ZERO COUPON NOTES DUE 2036

The Zero Coupon senior notes due 2036 (Zero Coupons) have an aggregate principal amount due at maturity of approximately $2.3 billion, reflecting an accretion rate of 5.24%. The Zero Coupons can be put to Occidental in October of each year, in whole or in part, for the then-accreted value of the outstanding Zero Coupons. The Zero Coupons can next be put to Occidental in October 2020, which, if put in whole, would be $992 million at such date. Occidental has the ability and intent to refinance these obligations using long-term debt should a put be exercised.

DEBT GUARANTEES

As of December 31, 2019, and 2018, Occidental had provided limited recourse guarantees on approximately $242 million and $244 million, respectively, of Dolphin Energy’s debt, which are limited to certain political and other events.

FAIR VALUE OF DEBT

Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments’ maturities. The estimated fair values of Occidental’s debt at December 31, 2019, and 2018, substantially all of which were classified as Level 1, were approximately $38.8 billion and $10.3 billion, respectively. Occidental’s exposure to changes in interest rates relates primarily to its variable-rate, long-term debt obligations, and is not material. As of December 31, 2019, and 2018, variable-rate debt constituted approximately 12% and 1% of Occidental’s total debt, respectively.

DEBT MATURITIES

At December 31, 2019, future principal payments on long-term debt aggregated approximately $37.4 billion, of which, $6.4 billion is due in 2021, $4.7 billion is due in 2022, $1.2 billion is due in 2023, and $25.1 billion is due in 2024 and thereafter.