Published on 12/6/2021 in the Prospect News Investment Grade Daily.
New Issue: Baker Hughes prices $1.25 billion of senior notes in two parts
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Dec. 6 – Baker Hughes Holdings LLC and Baker Hughes Co-Obligor, Inc. priced $1.25 billion of notes (A3/A-) in two tranches at par in a Rule 144A and Regulation S offering on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $650 million of 1.231% two-year notes at a spread of Treasuries plus 60 basis points, versus talk in the Treasuries plus 80 bps area, according to a market source.
Baker Hughes priced $600 million of 2.061% five-year notes with an 85 bps spread over Treasuries, compared to talk in the Treasuries plus 110 bps to 115 bps area.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and UniCredit Capital Markets LLC are handling the sale as joint bookrunners.
Proceeds will be used for general corporate purposes, which includes the redemption of the 2.773% senior notes due 2022.
Baker Hughes is a Houston-based company that provides integrated oilfield products, services and digital solutions.
| Issuers: | Baker Hughes Holdings LLC and Baker Hughes Co-Obligor, Inc.
|
| Amount: | $1.25 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and UniCredit Capital Markets LLC
|
| Co-managers: | ANZ Securities, Inc., BNP Paribas Securities Corp., Intesa Sanpaolo SpA, Loop Capital Markets LLC, MUFG, RBC Capital Markets, LLC, SG Americas Securities, LLC, SMBC Nikko Securities America, Inc. and Standard Chartered Bank
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Two-year notes
|
| Amount: | $650 million
|
| Maturity: | Dec. 15, 2023
|
| Coupon: | 1.231%
|
| Price: | Par
|
| Yield: | 1.231%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
| Price guidance: | Treasuries plus 80 bps area
|
| Cusip: | 05724BAB5
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Dec. 15, 2026
|
| Coupon: | 2.061%
|
| Price: | Par
|
| Yield: | 2.061%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Nov. 15, 2026, then a par call
|
| Price guidance: | Treasuries plus 110 bps to 115 bps area
|
| Cusip: | 05724BAD1
|
|
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