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Weatherford pulls offerings of $1 billion in mandatories, stock: ‘do not reflect value’
New York, Sept. 21 – Weatherford International plc dropped its planned offering of $1 billion of mandatory exchangeable subordinated notes and common stock.
The company said investor interest was “strong” but added that it was “unwilling to sell securities at prices that do not reflect the value we have created at Weatherford.”
Weatherford will continue its “resolute course of focusing on its core businesses and the efficiency of its operations,” according to a news release.
It added that it expects to have positive free cash flow this year and in future years, and has “ample” liquidity.
The decision to abandon the sales was announced after the close on Monday.
Weatherford launched the transactions Monday morning and they had been expected to price after the close.
Citigroup Global Markets Inc. and Wells Fargo Securities LLC were joint bookrunners.
The mandatories, with a par issue price of $25.00 per note, were to be issued by Weatherford International Ltd., a subsidiary of Weatherford International, which will guarantee the deal.
Price talk for the notes was for a 6.25% to 6.75% coupon and a 22.5% to 27.5% initial conversion premium.
The notes, which would have matured on Oct. 15, 2018, were to be non-callable and have standard dividend and takeover protection.
Proceeds of both deals were expected to be used to pre-fund potential acquisitions and for general corporate purposes. Pending those uses, the company had expected to reduce temporarily borrowings under its revolving credit facility.
Weatherford is an oilfield service company based in Baar, Switzerland.
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