Apache Corp. (APA) announced that it has elected to redeem all $100 million of its outstanding 5.68% Cumulative Preferred Stock, Series B, no par value per share, on Dec. 30, 2009.
Apache has also authorized Wells Fargo Bank, N.A., as Depositary under the Deposit Agreement dated as of Aug. 25, 1998, to simultaneously redeem all of its Depositary Shares each representing one-tenth of one share of Series B Preferred Stock on Dec. 30, 2009.
Apache ended the third quarter with $1.4 billion in cash on its balance sheet, and debt was 25 percent of total capitalization. By redeeming the $100 million, 5.68% Series B Preferred Stock with cash that is currently invested in short-term U.S. government securities, Apache will further reduce its average cost of funds.
The Series B Preferred Stock will be redeemed at a redemption price of $1,000 per share, plus $9.47 in accrued and unpaid dividends, through the Series B Redemption Date, for an aggregate redemption price of $1,009.47 per share of Series B Preferred Stock.
The Depositary Shares will be redeemed at a redemption price of $100 per share, plus $0.947 in accrued and unpaid dividends, through the Depositary Shares Redemption Date, for an aggregate redemption price of $100.947 per Depositary Share.
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