Second paragraph under "Debt is Manageable" - can anyone explain what the 2036 puttable bond that might come due in October is?
https://seekingalpha.com/article/4363827-i-wouldnt-buy-occidental-even-oil-prices-recover
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You can get this stuff off the SEC filings. I am not giving financial advice and you should do your own research if you decide to invest based off what is listed below.
In simple terms: In the investing world a 'put' is an option term that thinks the stock will go down. So inlcuding a put option in a bond clause is like protecting your self incase the company goes south and starts having liquidity issues.
Here is glance at OXYs debt situation.
- 4 billion is due in 2021
- - 2.43 billion is due in 1Q21.
- - The 7.4 billion also includes another 992 million in 2036 (LAPC notes). The 'put' or early prepayment clause/feature in the notes are annual, with the next put date being October 2020. It has been trending to exercise these clauses into action and especially when there are liquidity issues with a company. It gives the bond holders assurance of their investment to a degree.
- 6 billion in 2022
- 2 billion in 2023