Halliburton holders convert nearly all 3.125% convertibles ahead of redemption

By Angela McDaniels

Tacoma, Wash., Sept. 9 - Halliburton Co. said substantially all holders of its 3.125% convertible senior notes due 2023 converted their notes after they were called on July 30.

The company had planned to redeem the $1.2 billion of outstanding notes on Aug. 29.

Holders could convert each note into 53.4069 shares of common stock through Aug. 28, which equals a conversion price of $18.72. Halliburton stock closed at $37.91 (NYSE: HAL) on Monday.

The company said it will pay cash for the principal amount of the converted notes and will pay the roughly $1.7 billion conversion premium through a combination of $700 million of cash and $1 billion of stock.

The settlement of the principal amount is expected to be funded with the proceeds from an issuance of new senior notes, according to a 424B3 filing with the Securities and Exchange Commission. Settlement of the conversion premium will be funded with cash on hand and Halliburton shares held in treasury.

Houston-based Halliburton provides products and services to the energy industry.

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