Tulsa-based Helmerich & Payne announced it had priced an offering of $1.25 billion in senior notes to help pay for its recent acquisition of an international oil and gas operation headquartered in the United Kingdom.
The acquisition, announced in late July, totaled $1.9725 billion in cash as Helmerich & Payne took over KCA Deutag International Limited and its 9,000 employees. The Aberdeen, United Kingdom company operates in more than 20 countries worldwide.
Combined with KCA Deutag’s global operations, on completion of the transaction, H&P will have leading positions in the U.S. and Middle East, the two most prominent oil and gas producing regions in the world.
Helmerich & Payne, Inc. announced that it has priced an offering of $1.25 billion aggregate principal amount of senior notes, comprised of the following tranches : $350 million aggregate principal amount of 4.650% senior notes due 2027 to be issued at a price equal to 99.958% of their face value, $350 million aggregate principal amount of 4.850% senior notes due 2029 to be issued at a price equal to 99.883% of their face value and $550 million aggregate principal amount of 5.500% senior notes due 2034 to be issued at a price equal to 99.670% of their face value.
The offering is expected to close on September 17, 2024, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the Offering, together with the proceeds of its term loan credit facility and cash on hand, to finance the purchase price for its previously announced pending acquisition of KCA Deutag International Limited, to repay certain of KCAD’s outstanding indebtedness, and to pay related fees and expenses.
The net proceeds from the Offering will reduce the commitments under the Company’s existing bridge loan facility for purposes of financing the acquisition to approximately $332 million.
