01—Abstract
Summary
Summary of the 8-K filed August 18, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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.
02—Key points
Key Highlights
- Baker Hughes secured a $2.6 billion delayed draw term loan facility to finance the acquisition of Chart Industries.
- Baker Hughes Holdings LLC is the borrower, and Baker Hughes Company is the parent guarantor.
- The loan is senior and unsecured, with Goldman Sachs Bank USA acting as the Administrative Agent.
- The availability of funds is conditional on the concurrent closing of the Chart Industries acquisition.
- Proceeds can be used to finance the acquisition and related fees/expenses if other permanent financing isn't obtained.
- Loan interest rates are based on Adjusted Term SOFR or Alternate Base Rate, with margins tied to credit ratings.
- The term loan matures 2 years from the date of funding and contains customary covenants and default provisions.
03—Questions
Frequently Asked Questions
What is the primary purpose of this $2.6 billion term loan facility?
The primary purpose of the $2.6 billion term loan facility is to finance Baker Hughes Company's (BHC) previously announced acquisition of Chart Industries, Inc. (Chart), and to cover related fees and expenses should alternative permanent financing not be secured prior to the closing of the acquisition.
Are there any conditions that must be met for Baker Hughes to draw on this term loan?
Yes, the availability of the term loan is subject to certain conditions, most importantly, the substantially concurrent consummation of the Chart Industries acquisition. Other customary conditions outlined in the agreement must also be satisfied or waived.
How will the interest rate be determined for this term loan?
Interest rates will be determined by either Adjusted Term SOFR (Term SOFR plus a 10 bps credit spread adjustment) or the Alternate Base Rate. Both options are subject to an applicable margin that ranges from 62.5 bps to 112.5 bps for the SOFR option and 0 bps to 12.5 bps for the Alternate Base Rate option, depending on Baker Hughes Holdings LLC's senior unsecured long-term debt ratings from Standard & Poor's or Moody's.
What is the maturity date for this term loan?
Borrowings under the Term Loan Credit Agreement will mature 2 years from the date of funding.
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