Occidental’s $10.8 Billion Takeover Is a High-Stakes Debt Wager

The $10 billion of debt lined up for Occidental Petroleum Corp.’s takeover of Texas shale driller CrownRock LP is sizing up to be one of the largest bridge financing deals of the year — and a crucial test for the energy giant.

Just months after regaining its investment-grade credit rating, the Houston-based oil and gas producer agreed to a $10.8 billion transaction to expand its business in the Permian Basin. As part of the deal, it committed to pay about $9.1 billion in cash, funded via a temporary bridge loan from Bank of America that will likely be replaced ...