Baker Hughes eyes three-part offering of floaters, fixed-rate notes; price talk emerges

By Cristal Cody

Chicago, Dec. 6 – Baker Hughes Holdings LLC and Baker Hughes Co-Obligor, Inc. are expected to sell a three-part offering of senior notes, according to a 424B5 filing with the Securities and Exchange Commission on Monday morning.

The company will offer a set of notes due Dec. 15, 2023: one part with a floating-rate coupon and one part with a fixed-rate coupon, according to a market source.

The floating-rate tranche is talked at a margin over SOFR. The floating-rate notes cannot be called early.

The fixed-rate tranche is talked in the Treasuries plus 80 basis points area.

The deal will also include a tranche of senior notes due Dec. 15, 2026 talked in the Treasuries pus 110 bps to 115 bps area, the source said.

The fixed-rate tranches will come with a make-whole call and then par calls.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are handling the sale as joint bookrunners.

Bank of New York Mellon Trust Co., NA is the trustee.

Davis Polk & Wardwell LLP is working as counsel to the issuer. Cravath, Swaine & Moore LLP is advising the bookrunners.

Proceeds will be used for general corporate purposes, which includes the redemption of the 2.773% senior notes due 2022.

Baker Hughes is an oilfield services company based in Houston.

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