March 4 - Baker Hughes is planning to raise about $10 billion through a cross-border bond sale to help fund its acquisition of Chart Industries, according to a report that cited people familiar with the matter. The proposed financing is intended to support the oilfield services company in completing a previously announced all-cash transaction.
The acquisition underpins Baker Hughes' increased exposure to industrial technology that serves liquefied natural gas and data centers. Management announced last year that it would acquire Chart Industries in a $13.6 billion all-cash deal.
Sources say Baker Hughes has engaged banks, led by Goldman Sachs Group and Morgan Stanley, to organize calls with potential investors. An issuance comprising euro- and dollar-denominated bonds could follow those investor meetings, the report added.
Proceeds from the contemplated bond sale would be used to replace a 364-day loan facility of as much as $14.9 billion that was arranged last year to help finance the Chart Industries purchase. That short-term facility had provided bridge financing while the company arranged longer-term funding.
Attempts to obtain immediate comment from Baker Hughes and Morgan Stanley were not successful, and Goldman Sachs declined to comment, the report noted.
Context and implications
The proposed bonds would represent a sizeable cross-border issuance tied directly to the financing of a major corporate acquisition. The structure and timing of the offering - including whether it ultimately includes euro- and dollar-denominated tranches - remain subject to investor demand and final execution decisions by the company and its underwriters.
The article also referenced a Fair Value calculator tool promoted within the report that uses a mix of 17 industry valuation models to evaluate whether BKR is undervalued, noting investors can use it to assess the stock.