By Andrea Heisinger
Omaha, March 19 - Weatherford International Ltd. priced $1.5 billion of senior notes (Baa1/BBB+) in three tranches Wednesday, an informed source said.
The $500 million of 5.15% five-year notes priced at 99.794 to yield 5.198%, or Treasuries plus 283 basis points. They have a make-whole redemption option of Treasuries plus 45 bps.
Price talk for the tranche was in the 287.5 bps area over Treasuries.
The $500 million of 6% 10-year notes priced at 99.462 to yield 6.073%, or Treasuries plus 270 bps. They have a make-whole of Treasuries plus 40 bps.
Price talk was 270 to 275 bps more than Treasuries for the tranche.
The $500 million of 7% 30-year notes priced at 99.655 to yield 7.028%, or Treasuries plus 283 bps. They have a make-whole of Treasuries plus 45 bps.
Price talk for the tranche was in the 287.5 bps area over Treasuries.
The notes feature a change-of-control put of 101%.
Bookrunners were Goldman Sachs & Co., Deutsche Bank Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc.
Co-managers were ABN Amro Securities, J.P. Morgan Securities Inc. and Simmons and Co., International.
Proceeds will be used to repay existing short-term debt and for general corporate purposes, including capital expenditures and business acquisitions.
The oilfield services company is based in Houston.
| Issuer: | Weatherford International Ltd.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Co-managers: | ABN Amro Securities, J.P. Morgan Securities Inc. and Simmons and Co., International
|
| Change-of-control put: | 101%
|
| Trade date: | March 19
|
| Settlement date: | March 25
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Five-year tranche
|
| Amount: | $500 million
|
| Maturity: | March 15, 2013
|
| Coupon: | 5.15%
|
| Price: | 99.794
|
| Yield: | 5.198%
|
| Spread: | Treasuries plus 283 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Price talk: | 287.5 bps area
|
|
|
| 10-year tranche
|
| Amount: | $500 million
|
| Maturity: | March 15, 2018
|
| Coupon: | 6%
|
| Price: | 99.462
|
| Yield: | 6.073%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 270 to 275 bps
|
|
|
| 30-year tranche
|
| Amount: | $500 million
|
| Maturity: | March 15, 2038
|
| Coupon: | 7%
|
| Price: | 99.655
|
| Yield: | 7.028%
|
| Spread: | Treasuries plus 283 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Price talk: | 287.5 bps area
|
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