By Aleesia Forni
Virginia Beach, Nov. 5 – Halliburton Co. was in Thursday’s market with a $7.5 billion issue of senior notes (A2/A/A-) in five tranches, according to an informed source.
The sale included $1.25 billion of 2.7% five-year notes priced at 110 basis points over Treasuries.
Pricing came tighter than talk set in the Treasuries plus 120 bps area and tighter than initial price thoughts in the range of Treasuries plus 140 bps to 150 bps.
Also priced was $1.25 billion of 3.375% seven-year notes at 140 bps over Treasuries.
The notes sold tighter than the Treasuries plus 150 bps area guidance. Initially, talk was in the 170 bps to 180 bps range over Treasuries.
A $2 billion tranche of 3.8% 10-year bonds sold with a 160 bps spread over Treasuries.
Guidance was in the 170 bps area over Treasuries after having firmed from talk in the 195 bps area over Treasuries.
A $1 billion 4.85% 20-year tranche sold at 185 bps over Treasuries.
The 20-year tranche was guided in the 195 bps area over Treasuries and talked in the Treasuries plus 215 bps to 225 bps range.
Finally, $2 billion of 5% 30-year bonds priced at 200 bps over Treasuries.
The notes sold tighter than the Treasuries plus 210 bps area guidance and the initial Treasuries plus 230 bps to 240 bps talk.
BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Mizuho Securities are the bookrunners.
Proceeds will be used for the acquisition of Baker Hughes Inc.
Halliburton is a Houston-based diversified energy services company.
| Issuer: | Halliburton Co.
|
| Issue: | Senior notes
|
| Amount: | $7.5 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities
|
| Trade date: | Nov. 5
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 15, 2020
|
| Coupon: | 2.7%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 120 bps area (+/- 5 bps), tightened from Treasuries plus 140 bps to 150 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 15, 2022
|
| Coupon: | 3.375%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 150 bps area (+/- 5 bps), tightened from Treasuries plus 170 bps to 180 bps
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | Nov. 15, 2025
|
| Coupon: | 3.8%
|
| Spread: | Treasuries plus 160 bps
|
| Price guidance: | Treasuries plus 170 bps area (+/- 5 bps), tightened from Treasuries plus 195 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 15, 2035
|
| Coupon: | 4.85%
|
| Spread: | Treasuries plus 185 bps
|
| Price guidance: | Treasuries plus 190 bps area (+/- 5 bps), tightened from Treasuries plus 215 bps to 220 bps
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | Nov. 15, 2045
|
| Coupon: | 5%
|
| Spread: | Treasuries plus 200 bps
|
| Price guidance: | Treasuries plus 210 bps area (+/- 5 bps), tightened from Treasuries plus 230 bps to 240 bps
|
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