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Weatherford International plc Announces the Pricing of a $500,000,000 6.5% Senior Secured Notes Offering
HOUSTON, Sept. 21, 2021 /PRNewswire/ -- Weatherford International plc (NASDAQ: WFRD) ("Weatherford" or the "Company") today announced that its wholly owned
About this update from Weatherford International Plc
[{"type":"text","content":"HOUSTON, Sept. 21, 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 $500 million aggregate principal amount of 6.5% senior secured first lien notes due 2028 (the \"Secured Notes\") at an issue price of 100.0%. The offering of the Secured Notes is expected to close on September 30, 2021 subject to customary closing conditions.\nThe Secured Notes will pay interest semi-annually on September 15 and March 15 of each year, beginning on March 15, 2022 at a rate of 6.5% per year. The Secured Notes will mature on September 15, 2028. The Secured Notes will be guaranteed by the Company and the same subsidiaries of the Company that guarantee the Issuer's 8.75% Senior Secured Notes due 2024 (the \"2024 Secured Notes\").\nThe Issuer will use the net proceeds from the offering and cash on hand to redeem all of its 2024 Secured Notes on September 30, 2021 and pay related fees and expenses. If the offering of the Secured Notes is completed, the Issuer also intends to use cash on hand to redeem $200 million principal amount of its 11.0% senior notes due December 1, 2024 on October 20, 2021 (the \"Unsecured Notes\").\nUnder the indenture governing the Unsecured Notes, the Issuer has the right to redeem up to $500 million principal amount of the Unsecured Notes at a redemption price of 103% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but not including, the redemption date, at any time prior to December 1, 2022. Following the completion of the redemption of the $200 million principal amount of the Unsecured Notes described above, the Issuer will have the ability to redeem a further $300 million principal amount of the Unsecured Notes at the redemption price described above. The Issuer may consider redeeming additional principal amounts of the Unsecured Notes in the future depending on generated cash flow and incremental available liquidity under any future asset-based lending facility or revolving credit facility, subject to its liquidity needs and other considerations. There can be no assurance that the Company will be able to enter a new asset-based lending facility or revolving credit facility or that the ...