Baker Hughes Finalizes €3 Billion Senior Notes Offering to Fund Chart Industries Acquisition
Summary
Baker Hughes priced its €3 billion senior notes offering, providing specific terms for the debt issuance intended to finance the acquisition of Chart Industries.
Key Events
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Pricing of €3 Billion Senior Notes
Baker Hughes Holdings LLC and Baker Hughes Co-Obligor, Inc. priced €2,982,975,000 in senior notes across four tranches due 2030, 2034, 2038, and 2046, with coupon rates ranging from 3.226% to 4.737%.
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Acquisition Financing Confirmed
The proceeds from this offering are intended to finance the acquisition of Chart Industries, Inc., as evidenced by a special mandatory redemption clause tied to the merger's consummation.
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Investment Grade Rating
The notes are anticipated to receive investment-grade ratings of A3 from Moody's and A from S&P, reflecting the company's creditworthiness.
Analysis
Baker Hughes has officially priced its €3 billion senior notes offering, a critical step in financing the previously announced acquisition of Chart Industries. This FWP provides the detailed terms for four tranches of Euro-denominated notes, ranging in maturity from 2030 to 2046, with coupons from 3.226% to 4.737%. The offering includes a special mandatory redemption clause, requiring the notes to be redeemed at 101% of principal if the Chart Merger is not consummated by July 28, 2026, or is terminated. While the overall pricing of a larger debt offering was previously reported, this filing provides the specific, material terms for the Euro portion, solidifying the company's funding for its strategic acquisition.
At the time of this filing, BKR was trading at $61.30 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $59.5B. The 52-week trading range was $33.60 to $67.00. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.