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Halliburton Launches $7.5B Offering to Fund Baker Hughes Deal

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Halliburton announced the pricing of an offering of $7.5 billion aggregate principal amount of senior notes. The notes are being issued in five tranches: $1.25 billion of 5-year notes bearing interest at a fixed rate of 2.70% per year and maturing on November 15, 2020; $1.25 billion of 7-year notes bearing interest at a fixed rate of 3.375% per year and maturing on November 15, 2022; $2 billion of 10-year notes bearing interest at a fixed rate of 3.80% per year and maturing on November 15, 2025; $1 billion of 20-year notes bearing interest at a fixed rate of 4.85% per year and maturing on November 15, 2035; and $2 billion of 30-year notes bearing interest at a fixed rate of 5.00% per year and maturing on November 15, 2045. The offering is expected to close on November 13, 2015.

Halliburton intends to use the net proceeds of the offering for general corporate purposes, including financing a portion of the cash consideration component of Halliburton’s pending acquisition of Baker Hughes Incorporated. In the event that the Baker Hughes acquisition is not consummated, Halliburton intends to use the net proceeds from the sale of the 2025 notes, the 2035 notes and the 2045 notes for general corporate purposes. The 2020 notes and the 2022 notes will be subject to a special mandatory redemption if the Baker Hughes acquisition is not consummated. Pending the application of the net proceeds to finance the Baker Hughes acquisition, Halliburton may temporarily invest the net proceeds in cash equivalents or short-term investments.

The notes are being offered pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. Citigroup Global Markets Inc., Credit Suisse Securities (USA) Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Mizuho Securities USA Inc. are acting as joint book-running managers in connection with the offering of the notes.