Summary by Moomoo AI
On December 28, 2023, Occidental Petroleum Corporation (Occidental) announced the entry into a $4.7 billion Term Loan Agreement with Bank of America, N.A., and other financial institutions. This agreement is structured to provide Occidental with a 364-day senior unsecured term loan facility of $2.0 billion and a two-year senior unsecured term loan facility of $2.7 billion. The funds from these facilities are intended to finance the acquisition of CrownRock, L.P., refinance certain debts of the acquired entity, and cover related fees and expenses. The interest rates for these loans will vary based on Occidental's credit ratings by Moody's and Standard & Poor's and are subject to certain conditions. Additionally, Occidental is obligated to maintain a specific debt to capitalization ratio and is subject to customary covenants and events of default, which if not remedied, could lead to the immediate repayment of the loans.