Weatherford upsizes to $1.25 billion, sets price talk in two-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., June 9 – Weatherford International Ltd. cut short the roadshow for its new two-part offering of senior notes (expected ratings B2/BB-) and upsized the deal to $1.25 billion from $1 billion, market sources said on Thursday.

The deal features five-year notes, which come with two years of call protection and are talked to yield in the 7¾% area, and seven-year notes, which come with three years of call protection and are talked to yield in the 8¼% area.

Tranche sizes remain to be determined.

Pricing is set for Friday, sources say. A previously announced schedule had the deal on the road until the week ahead.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the joint global coordinators and bookrunners.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and MUFG are the joint bookrunning managers.

Standard Chartered Bank, SEB, TD Securities, Barclays, RBC Capital Markets, UniCredit Capital Markets and BBVA are the co-managers.

The Houston-based oilfield services company plans to use the proceeds to fund a portion of the tender offers for its 6.35% notes due 2017, the 6% notes due 2018, the 9 5/8% notes due 2019 and the 5 1/8% notes due 2020, or if the tender is not fully subscribed, to repay or retire other outstanding debt, which may include amounts outstanding under its revolver.

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