By Ronda Fears
Nashville, June 4 - Schlumberger Ltd. sold $1.3 billion of convertibles in two parts before the open Wednesday in the Rule 144A market via joint bookrunning lead managers Citigroup and Goldman Sachs & Co.
Tranche A, for $850 million, sold at par to yield 1.5% with a 51% initial conversion premium - at the cheap end of guidance for a 1.0% to 1.5% coupon and 51% to 56% initial conversion premium.
Tranche B, for $450 million, sold at par to yield 2.125% with a 67% initial conversion premium - at the cheap end of guidance for a 1.625% to 2.125% coupon and 67% to 72% initial conversion premium.
Schlumberger, a New York-based oilfield services company, plans to use proceeds to repay debt and for general corporate purposes.
Terms of the deal are:
Tranche A
Issuer: Schlumberger Ltd.
| Issue: | Convertible senior debentures
|
| Lead managers: | Citigroup and Goldman Sachs & Co.
|
| Amount | $850 million
|
| Greenshoe: | $125 million
|
| Maturity: | June 1, 2023
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 51%
|
| Conversion price: | $72.33
|
| Conversion ratio: | 13.8255
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5 for cash only and in year 10 and 15 for cash and/or stock
|
| Expected ratings: | Moody's: A1
|
| S&P: A+
|
| Pricing date: | June 4 before open
|
| Settlement: | June 9
|
|
|
| Tranche B
|
| Issuer: | Schlumberger Ltd.
|
| Issue: | Convertible senior debentures
|
| Lead managers: | Citigroup and Goldman Sachs & Co.
|
| Amount | $450 million
|
| Greenshoe: | $75 million
|
| Maturity: | June 1, 2023
|
| Coupon: | 2.125%
|
| Price: | Par
|
| Yield: | 2.125%
|
| Conversion premium: | 67.01%
|
| Conversion price: | $80.00
|
| Conversion ratio: | 12.50
|
| Call: | Non-callable for 7 years
|
| Put: | In years 7 for cash only and in year 10 and 15 for cash and/or stock
|
| Expected ratings: | Moody's: A1
|
| S&P: A+
|
| Pricing date: | June 4 before open
|
| Settlement: | June 9
|
|
|
|
|
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