Summary
Baker Hughes Company (BHC) has filed an 8-K detailing a significant debt offering, raising a total of €3.0 billion and $6.0 billion through the issuance of senior notes across multiple maturity dates and interest rates. These notes were issued by its subsidiaries, Baker Hughes Holdings LLC and Baker Hughes Co-Obligor, Inc., and are fully and unconditionally guaranteed by BHC. The primary purpose of this substantial financing is to fund a portion of the cash consideration for the pending acquisition of Chart Industries, Inc. (Chart), along with associated transaction fees and the repayment of Chart's outstanding indebtedness. This move indicates a strategic step towards completing a major acquisition, which will likely reshape the company's capital structure and operational landscape.
Key Highlights
- 1Baker Hughes successfully closed a dual-currency offering of senior notes, raising €3.0 billion and $6.0 billion.
- 2The proceeds are earmarked to fund the cash portion of the pending acquisition of Chart Industries, Inc.
- 3The debt issuance includes notes with maturities ranging from 2029 to 2056, with interest rates varying by maturity and currency.
- 4The senior notes are fully and unconditionally guaranteed by the parent company, Baker Hughes Company (BHC).
- 5This offering represents a significant capital raise to support a major strategic acquisition.
- 6Baker Hughes terminated approximately $11.0 billion in commitments under a prior bridge facility related to the Chart acquisition, indicating a shift in financing strategy.