Nexen is seeking to amend its current terms of debt with holders of almost US$4 billion worth in bonds. The amendments seek to remove some of the conditionalities as well as add CNOOC as guarantor of the bond issue.
CNOOC owns Nexen through a purchase worth $15.1 billion, which at the time was the biggest purchase on record for a Chinese company. It obtained approval from the Canadian government last December, claiming to be the 'exceptional circumstances' contemplated in the prohibition on future acquisitions by state owned companies of the oil sands.
The deadline for the consent of bondholders is by 5:00 pm NYST on March 18, 2013. The deal would allow receipt of US$1 for every US$1000 of principal paid.
According to the statement by the company, the borrower seeks to delete or amend restrictive covenants in the current forms, add the guarantee by CNOOC and include other terms identifying CNOOC's interest and participation in the bond issue.
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