E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 5/2/2016 in the Prospect News Bank Loan Daily, Prospect News Investment Grade Daily and Prospect News Liability Management Daily.

Baker Hughes to buy back $1 billion debt, refinance $2.5 billion loan

By Susanna Moon

Chicago, May 2 – Baker Hughes Inc. said it plans to buy back about $1 billion of debt and to refinance its $2.5 billion credit facility set to mature in September as part of an effort to enhance its capital structure.

The announcement comes after Baker Hughes and Halliburton Co. called off their merger plans Sunday under a $38 billion deal dating back to November 2014.

The company plans to lower costs, to simplify its business and to enhance its commercial strategy in order to strengthen its competitive position and its financial performance “during the ongoing industry challenges of today and for the additional opportunities that will be available when the market recovers,” according to a company press release.

“While both companies expected the proposed merger to result in compelling benefits to shareholders, customers and other stakeholders, challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action,” Dave Lesar, chairman and chief executive officer of Halliburton, said in a statement on Sunday.

Added Martin Craighead, chairman and CEO of Baker Hughes: “This was an extremely complex, global transaction and, ultimately, a solution could not be found to satisfy the antitrust concerns of regulators, both in the United States and abroad.”

In connection with the termination of the merger agreement, Halliburton will pay Baker Hughes a breakup fee of $3.5 billion by Wednesday.

Baker Hughes is an oilfield services company based in Houston.

Halliburton is a Houston-based diversified energy services company.


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.