What premium is being offered on the senior notes and how does it compare to current market yields?

Premium on the tender: APA’s cash tender offer is priced at ~105 % of par (i.e., a 5 % premium to the notes’ current market price). In dollar terms the company is willing to pay an extra $5 for every $100 face value that it redeems.

Comparison with market yields: At the time of the announcement the 2027 senior notes are trading at roughly 95 % of par, which translates into a yield of about 6.2 % on a price‑adjusted basis. The 5 % premium effectively brings the implied yield on the tendered notes down to ≈5.6 %, i.e., roughly 30–40 bps lower than the prevailing market yield.

Trading implications: The premium makes the tender attractive for holders who prefer certainty of cash over the higher, but risk‑ier, market yield. Expect a modest uptick in selling pressure as investors who are willing to lock in the higher return may hold the bonds, while more price‑sensitive holders will tender. Short‑term traders could look for a short‑term pull‑back in the note’s price toward the tender price once the tender window closes, whereas long‑term credit investors may consider re‑entering at the post‑tender price, which should settle closer to the new yield level of ~5.6 %. Monitor APA’s credit spread relative to the Australian corporate bond index; a narrowing spread would reinforce the premium’s effectiveness, while any widening could signal residual liquidity risk that may keep the notes below the tender price until the offer expires.