By Andrea Heisinger
New York, Jan. 6 - Weatherford International Ltd. released terms Tuesday for an upsized $1.25 billion issue of senior notes (Baa1/BBB+/) priced in two tranches, a source close to the deal said.
The size was originally $500 million in a single tranche.
The $1 billion 9.625% 10-year notes priced at 99.495 to yield 9.708%, or Treasuries plus 723 basis points. This was tighter than price talk of 725 bps, a source said.
The $250 million of 9.875% 30-year notes priced at 98.841 to yield 10%, or Treasuries plus 698.2 bps. The notes were priced at a yield, the source said.
Each tranche has a make-whole call of Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC, Barclays Capital Inc., Deutsche Bank Securities, Goldman Sachs & Co. and UBS Investment Bank.
Proceeds will be used to repay existing short-term debt.
The oil and gas technology company is based in Houston.
| Issuer: | Weatherford International Ltd.
|
| Issue: | Senior notes
|
| Total amount: | $1.25 billion
|
| Bookrunners: | Banc of America Securities LLC, Barclays Capital Inc., Deutsche Bank Securities, Goldman Sachs & Co., UBS Investment Bank
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 5
|
| Settlement date: | Jan. 8
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 1, 2019
|
| Coupon: | 9.625%
|
| Price: | 99.495
|
| Yield: | 9.708%
|
| Spread: | Treasuries plus 723 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 725 bps
|
|
|
| 30-year notes
|
| Amount: | $250 million
|
| Maturity: | March 1, 2039
|
| Coupon: | 9.875%
|
| Price: | 98.841
|
| Yield: | 10%
|
| Spread: | 698.2 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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