By Andrea Heisinger
New York, Jan. 5 - Schlumberger SA, Schlumberger Norge SA, and Schlumberger Oilfield UK plc jointly priced $1.6 billion of notes (A1/A+/) late on Wednesday in three parts, a source who worked on the deal said.
A $500 million tranche of 2.65% five-year notes priced at 99.872 to yield 2.687% with a spread of Treasuries plus 55 basis points. The notes are callable at a make-whole amount of 10 bps over Treasuries.
The tranche priced at the tight end of whispered guidance for the mid-60 bps and revised talk in the 60 bps area.
A $500 million tranche of 4.2% 10-year notes sold at 99.894 to yield 4.213% with a spread of 75 bps over Treasuries. The notes have a make-whole call of 15 bps over Treasuries.
The notes were whispered in the mid-80 bps and priced at the tight end of revised talk in the 80 bps area.
There was a second $600 million tranche of 10-year notes added for tax purposes. Both 10-year tranches have identical terms.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. were the bookrunners.
Proceeds are going toward general corporate purposes, including restructuring efforts following a recent acquisition of Smith International.
The notes are guaranteed by oilfield services company Schlumberger Ltd., which is based in Houston.
| Issuer: | Schlumberger SA, Schlumberger Norge SA, Schlumberger Oilfield UK plc
|
| Guarantor: | Schlumberger Ltd.
|
| Issue: | Notes
|
| Amount: | $1.6 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Trade date: | Jan. 5
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2016
|
| Coupon: | 2.65%
|
| Price: | 99.872
|
| Yield: | 2.687%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | Mid-60 bps (whispered), 60 bps area (revised)
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2021
|
| Coupon: | 4.2%
|
| Price: | 99.894
|
| Yield: | 4.213%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | Mid-80 bps (whispered), 80 bps area (revised)
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 15, 2021
|
| Coupon: | 4.2%
|
| Price: | 99.894
|
| Yield: | 4.213%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | Mid-80 bps (whispered), 80 bps area (revised)
|
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