Houston-based Schlumberger will issue five tranches of senior notes worth US$6 billion to help fund its pending $14.8 billion mega merger with Cameron International.
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Image from Schlumberger. |
Last week on 10 December, the oil services giant entered into a purchase agreement with JP Morgan Securities, Merrill Lynch, Fenner, Pierce & Smith Inc., and Morgan Stanley, and issued notes that mature in 2017, 2018, 2020, 2022, and 2025.
The net proceeds to Schlumberger from the offering will be used for general corporate purposes, including to finance a portion of the consideration of Schlumberger’s pending acquisition of Cameron International, the company said.
Details for the tranches are:
According to a securities filing, the issuance and sale of the notes is expected to close on or about 21 December, subject to customary closing conditions.
In mid-November, the US Department of Justice cleared the proposed merger between Schlumberger and Cameron without any conditions.
The deal is still subject to approval by Cameron stockholders and a special meeting is scheduled later this week on 17 December, where Cameron stockholders will consider and vote on the proposed merger plan. If approved, Schlumberger and Cameron expect to close the merger sometime in Q1 2016.
Earlier this month, Schlumberger announced its decision to undergo an additional round of job cuts this quarter, which will see the company incur an estimated restructuring charge of about $350 million.
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