Weatherford International plc Announces the Upsizing and Pricing of a $1,600 Million Senior Notes Offering
Weatherford International plc (NASDAQ: WFRD) has announced the pricing of its offering of 8.625% senior notes due 2030, increasing the principal amount from $1.5 billion to $1.6 billion. The issuance, set to close on October 27, 2021, will support the buyback or redemption of its 11.00% senior notes due December 1, 2024. The notes will pay interest semi-annually starting June 1, 2022, with maturity on April 30, 2030. The offering is targeted at qualified institutional buyers and will not be registered under the Securities Act.
- Increased offering size of senior notes from $1.5 billion to $1.6 billion.
- Notes offer a competitive interest rate of 8.625%.
- Proceeds will enhance liquidity and strengthen balance sheet by addressing upcoming debt maturities.
- Relying on debt financing may increase leverage and financial risk.
- High interest payments could strain cash flows.
HOUSTON, Oct. 14, 2021 /PRNewswire/ -- Weatherford International plc (NASDAQ: WFRD) ("Weatherford" or the "Company") today announced that its wholly owned subsidiary, Weatherford International Ltd. (the "Issuer"), has priced its previously announced offering of
The Notes will pay interest semi-annually on June 1 and December 1 of each year, beginning on June 1, 2022 at a rate of
The Issuer will use the net proceeds from the offering and cash on hand to purchase, in a separately announced tender offer, or redeem, up to
The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward Looking Statements
This news release contains forward-looking statements concerning, among other things, the Company's strategy and financing plans and goals. These forward-looking statements are also generally identified by the words "intends", "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the price and price volatility of oil and natural gas; the extent or duration of business interruptions, demand for oil and gas and fluctuations in commodity prices associated with COVID-19 pandemic; general global economic repercussions related to COVID-19 pandemic; the macroeconomic outlook for the oil and gas industry; and operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the COVID-19 virus and COVID-19 variants, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; financial market conditions and availability of capital; our ability to generate cash flow from operations to fund our operations; and the realization of additional cost savings and operational efficiencies. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. The Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
About Weatherford
Weatherford is a leading global energy services company. Operating in approximately 75 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 17,000 team members and approximately 365 operating locations, including manufacturing, research and development, service, and training facilities.
Contact:
Mohammed Topiwala
Weatherford Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Kelley Hughes
Weatherford Global Communications
+1 713-836-4193
kelley.hughes@weatherford.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/weatherford-international-plc-announces-the-upsizing-and-pricing-of-a-1-600-million-senior-notes-offering-301400892.html
SOURCE Weatherford International plc
FAQ
What is the amount of the senior notes offering by Weatherford (WFRD)?
When will the senior notes offered by Weatherford mature?
What is the interest rate on Weatherford's senior notes?
What will the proceeds from the Weatherford senior notes be used for?
When is the expected closing date for Weatherford’s senior notes offering?
