Summary
Baker Hughes Company (BKR) has filed an 8-K detailing a significant financing arrangement entered into on August 15, 2025. Baker Hughes Holdings LLC (BHH), as borrower, and Baker Hughes Company (BHC) as parent guarantor, secured a $2.6 billion senior, unsecured delayed draw term loan facility. This facility is specifically earmarked to finance BHC's previously announced acquisition of Chart Industries, Inc. (Chart) and to cover associated fees and expenses, provided that BHC has not secured alternative permanent financing before the closing of the Chart Acquisition. The term loan is contingent upon the substantial and concurrent completion of the Chart Acquisition. The credit agreement includes customary covenants, representations, and events of default. Notably, the loan commitments will be reduced by the net proceeds from certain asset sales occurring between the agreement's effective date and the closing date of the term loan. Borrowings under this agreement will mature two years from the funding date. This filing provides clarity on the funding mechanism for a key strategic acquisition, offering investors insight into the company's financial strategy.
Key Highlights
- 1Baker Hughes secured a $2.6 billion delayed draw term loan facility to finance the acquisition of Chart Industries.
- 2Baker Hughes Holdings LLC is the borrower, and Baker Hughes Company is the parent guarantor.
- 3The loan is senior and unsecured, with Goldman Sachs Bank USA acting as the Administrative Agent.
- 4The availability of funds is conditional on the concurrent closing of the Chart Industries acquisition.
- 5Proceeds can be used to finance the acquisition and related fees/expenses if other permanent financing isn't obtained.
- 6Loan interest rates are based on Adjusted Term SOFR or Alternate Base Rate, with margins tied to credit ratings.
- 7The term loan matures 2 years from the date of funding and contains customary covenants and default provisions.