Source: Baker Hughes
Baker Hughes Incorporated (NYSE: BHI) has sold an aggregate principal amount of $1.5 billion 5.125% senior notes due 2040. Interest is payable on March 15 and September 15 of each year. The first interest payment will be made on March 15, 2011, and will consist of interest from closing to that date. The offering is expected to close on August 24, 2010, subject to customary closing conditions.
Baker Hughes expects to use a portion of the net proceeds to repay, when due, at maturity or upon earlier redemption, $250 million aggregate principal amount of its outstanding 5.75% notes, which mature on June 1, 2011, and to pay back approximately $532 million of the company's outstanding commercial paper. The company will use the remaining net proceeds for general corporate purposes, which could include funding on-going operations, business acquisitions and repurchases of the company's common stock.