Baker Hughes sees no additional tenders in capped offer for two series

By Wendy Van Sickle

Columbus, Ohio, Jan. 3 – Baker Hughes, a GE Co. said subsidiary Baker Hughes, a GE Co., LLC did not receive any additional tenders after the early deadline of its capped tender offer for two series of notes, according to a press release.

As the offer ended at midnight ET on Jan. 3, the total amount of notes tendered remained at $68.5 million the same as at the early deadline of 5 p.m. ET on Dec. 15.

As announced Dec. 4, Baker Hughes was offering to purchase the notes for an aggregate maximum purchase price of $175 million excluding accrued interest.

As of the final deadline, holders had tendered the following amount of notes, listed in order of priority, with the total considerations listed set using a reference security and fixed spread:

• $6,117,000 of the $112,944,000 8.55% debentures due 2024 with pricing of $1,341.34 per $1,000 principal amount based on the 2.25% U.S. Treasury note due Nov. 15, 2027 for a reference yield of 2.367% plus 40 basis points; and

• $62,386,000 of the $305,788,000 6.875% notes due 2029 with pricing of $1,344.00 per $1,000 principal amount based on the 2.25% U.S. Treasury note due Nov. 15, 2027 for a reference yield of 2.367% plus 80 bps.

Pricing for the capped offer was set at 11 a.m. ET on Dec. 18.

The total purchase price in each case includes an early tender premium of $50.00 per $1,000 principal amount of notes tendered by the early tender deadline.

Holders also received accrued interest up to but excluding the settlement date, which was Dec. 19 for early tendered notes.

The 2024 notes were issued by Western Atlas Inc., and on July 3 BHGE LLC, the co-obligor, Baker Hughes Oilfield Operations, LLC and Baker Hughes International Branches, LLC became co-obligors of the notes.

The 2029 notes were issued by BHI and on July 3 BHGE LLC, as successor to BHI, and the co-obligor became co-obligors of the 2029 notes.

For the capped offer, notes could not be withdrawn after the early deadline.

BHGE LLC funded the notes purchase with some proceeds of the issue of BHGE LLC’s 2.773% senior notes due 2022, 3.337% senior notes due 2027 and 4.08% senior notes due 2047, which closed Dec. 11.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and Barclays (800 438-3242 or 212 528-7581) are the dealer managers. D.F. King & Co., Inc. (866 796-7179, 212 269-5550, bhge@dfking.com or dfking.com/bhge) is the tender and information agent.

Baker Hughes is an oilfield services company based in Houston.

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