Baker Hughes Issues $6.5B U.S. and €3B Euro Senior Notes to Fund Chart Acquisition
Baker Hughes issued $6.5 billion of senior unsecured U.S. notes in five tranches due 2029–2056 with coupons from 4.05% to 5.85%, and €3 billion of euro notes in four tranches due 2030–2046 at yields of 3.226%–4.737%. The net proceeds will fund cash consideration for its proposed acquisition of all Chart Industries shares.
1. Issuance Overview
Baker Hughes’ wholly owned subsidiaries issued $6.5 billion of senior unsecured U.S. notes across five tranches and €3 billion of euro notes across four tranches, all fully guaranteed on a senior unsecured basis by Baker Hughes.
2. Tranche Details
The U.S. offering comprises $500 million 4.050% notes due 2029, $1.25 billion 4.350% due 2031, $750 million 4.650% due 2033, $2 billion 5.000% due 2036 and $2 billion 5.850% due 2056. The euro offering includes €600 million 3.226% notes due 2030, €900 million 3.812% due 2034, €750 million 4.193% due 2038 and €750 million 4.737% due 2046.
3. Use of Proceeds and Redemption Provision
Net proceeds are earmarked to fund the cash consideration for the proposed acquisition of all outstanding Chart Industries shares. Each series includes a special mandatory redemption at 101% of principal if the Chart acquisition is not completed.