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Re: Buffett's Taking More Oxy Stock, So Maybe You Shouldn'thttps://seekingalpha.com/news/3561126-occidental-bonds-tumble-after-paying-buffett-dividend-in-shares-not-cash Occidental bonds tumble after paying Buffett dividend in shares, not cash Apr. 15, 2020 6:28 PM ET|About: Occidental Petroleum Corpor... (OXY)|By: Carl Surran, SA News Editor Occidental Petroleum (NYSE:OXY) shares closed -8.6% and bonds fell after the company said it would pay a special dividend to Warren Buffett in shares rather than cash, diluting other equity investors. OXY's most actively traded bonds today, the 2.7% notes due 2022, dropped ~3.6 cents to $0.795 on the dollar, and its 2.9% notes due 2024 fell 5.4 cents to $0.713 on the dollar, according to Bloomberg. After previously paying cash, Occidental issued common shares worth ~$257M to honor a quarterly payout on Berkshire Hathaway's preferred stock. The company has $11B of debt due by 2022, and with oil prices collapsing, it has looked to save cash by cutting employees' pay and its dividend. |
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