Apache's subsidiary, Apache Deepwater, remains committed to its previously announced redemption of certain public notes.
On Nov. 10, 2010, Apache announced that, upon consummation of its merger with Mariner, Apache Deepwater assumed the following notes of Mariner:(i) the 7.50% senior notes due 2013; (ii) the 11.75% senior notes due 2016; and (iii) the 8% senior notes due 2017.
Apache Deepwater and certain other Apache subsidiaries have provided notice to the holders of the Notes that they intend to redeem the 7.50% Notes, the 8% Notes and 35 percent of the 11.75% Notes on December 13, 2010. They have also provided notice to the holders of the 11.75% Notes that they intend to redeem the remaining 65 percent of the 11.75% Notes on December 14, 2010.
Pursuant to the provisions of the indenture (including its supplemental indentures) governing the 11.75% notes, Apache Deepwater will redeem 35% of the 11.75% notes with the proceeds of a private equity offering. In the offering, Apache Deepwater intends to issue 123 million membership units to Apache Corporation in exchange for $123 million prior to December 13, 2010. The redemption will be made on a pro rata basis.
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