Halliburton has announced a US$2 billion offering in senior notes. The debt is being issued in two tranches – $1 billion of 10½-year notes bearing interest at a fixed rate of 6.15% per year and maturing on September 15, 2019, and $1 billion of 30½-year notes bearing interest at a fixed rate of 7.45% per year and maturing on September 15, 2039.
The company has not specified what the funds will be used for, but did say in a release that the proceeds of the offering would be used for ‘general corporate purposes’.
Given the attractive rate of interest on offer, and the security of senior debt (a senior note is debt that takes priority over other unsecured debt owed by the issuer), Halliburton is expecting a quick take-up, and the offering is expected to close on Friday (March 13, 2009).
The offer comes after Weatherford International Ltd. announced similar plans back in January. The net proceeds are expected to be used to repay existing short-term indebtedness by the US-based company.
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