HMH Holding sets IPTs for 3-year secured bond offering

HMH Holding has announced initial price thoughts at L+650-700 on its planned three-year secured bond issue. The company has a borrowing limit of $220 million, and the transaction will be a maximum of $150 million.

Books are open via joint lead managers DNB Markets, Nordea, Pareto and SEB. Bookrunners held a series of investor calls through Jan. 20 following an initial mandate announcement on Jan. 14.

HMH Holding is an equal joint venture between Akastor ASA and Baker Hughes, and combines Baker Hughes' Subsea Drilling Systems business and Akastor's subsidiary MHWirth. The merger was completed in October 2021, with the new firm to be headquartered in Amsterdam.

Proceeds from the bond offering will be used to repay a bridge loan and fund general corporate purposes. MHH Holding BV is the issuing entity, which is set to be renamed Hmh Holding BV.

Bond documentation has been amended to limit dividend payments throughout the life of the bond. Documentation includes a 50% put option at par value if an asset sale is above $25 million, and the change of control clause has been amended to define an event as parent entity ownership of below two-thirds of shares and voting rights. The secured bonds will rank pari passu with the bank debt, and any future bond increases will be used to repay term loans.