Nexen to Decrease Debt by $1.5B

Last week, Moody's Investors Service announced that it completed its credit review and confirmed Nexen's Baa3 rating, with a negative outlook based on achieving certain debt levels within the next year. Nexen indicated it could meet these levels by reducing its debt by approximately US $1.5 billion. Nexen announced actions to reduce up to US $1 billion of its debt from cash on hand.

In connection with this, Nexen intends to issue a notice of redemption, before the end of March, for all US $500 million of its 5.05% Senior Notes due in 2013.

Nexen is also announcing offers to purchase up to US $500 million principal amount of its senior notes through both an Any and All Tender Offer and a Maximum Tender Offer pursuant to an Offer to Purchase dated today which sets forth the terms, conditions and limitations of these offers.

In the Any and All Tender Offer, Nexen is offering to purchase any and all of its 5.20% Senior Notes due in 2015 and its 5.65% Senior Notes due in 2017, each in the amount of US $250 million.

In the Maximum Tender Offer, Nexen is offering to purchase up to US $250 million principal amount, less the principal amount of notes purchased in the Any and All Tender Offer, of its 6.20% Senior Notes due in 2019 and its 7.40% Senior Notes due in 2028 in the order of priority specified in the Offer to Purchase. If the principal amount of the notes accepted for purchase in the Any and All Tender Offer equals or exceeds US $250 million, the Maximum Tender Offer will be terminated and no Maximum Tender Offer notes will be accepted for purchase.


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