Weatherford launches $1 billion five-year exchangeable to yield 5.625%-5.875%, up 37.5%-40%

By Rebecca Melvin

New York, June 1 – Weatherford International Ltd., a subsidiary of Weatherford International plc, launched an offering of five-year exchangeable senior notes to price early Thursday and talked to yield 5.625% to 5.875% with an initial conversion premium of 37.5% to 40%, according to market sources.

The registered, off-the-shelf deal includes a $150 million greenshoe and was being sold via RBC Capital Markets LLC and Citigroup Global Markets Inc. RBC is acting as sole structuring adviser.

The notes are non-callable with no puts and mature July 1, 2021. They have takeover and dividend protection and net share settlement.

The securities are being issued by Weatherford Bermuda and guaranteed by Weatherford International plc, or Weatherford Ireland and Weatherford International LLC, or Weatherford Delaware. The shares underlying the notes are Weatherford Ireland, listed on the New York Stock Exchange under ticker “WFT.”

Proceeds are being used to fund all or a portion of tender offers to purchase certain of the company’s 6.25% senior notes due 2017, 6% senior notes due 2018, 9.625% senior notes due 2019 and 5.125% senior notes due 2020.

Proceeds not used to fund the tenders will be used to repay or retire other outstanding debt, including amounts under Weatherford Bermuda’s revolving credit facility.

Weatherford is an international oilfield service company.

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