Conoco Retires Acquisition Bridge Facility.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Oct. 3, 2001

Conoco Inc. (NYSE:COCA) (NYSE:COCB) has successfully completed the refinancing of its $4.5 billion bridge facility undertaken at the time of the acquisition of Gulf Canada Limited Resources. The transaction is the largest ever energy sector financing, surpassing the company's previous record of $4 billion set two years ago.

As part of the program, Conoco Funding Company, a wholly owned subsidiary of Conoco Inc., issued $3.5 billion of debt across three maturities. Senior notes were issued as follows:

-- $1.250 billion 5.45% Senior notes due 2006

-- $1.750 billion 6.35% Senior notes due 2011

-- $500 million 7.25% Senior notes due 2031

Conoco Inc. also issued $1 billion of floating rate notes at the following levels:

-- $500 million at 3-month LIBOR plus 77 basis points one-year

maturity

-- $500 million at 3-month LIBOR plus 85 basis points

eighteen-month maturity

"These offerings, combined with excess cash, allowed us to retire both the bridge facility and refinance a portion of high-cost debt assumed as part of the acquisition," said Bob Goldman, Conoco senior vice president and CFO. "We were particularly pleased by the market's overwhelming response to our offerings despite the very volatile conditions since the September 11 attack and recent pricing of comparable energy credits."

Conoco is a major, integrated energy company active in more than 40 countries.