Schlumberger Holdings Corp., a subsidiary of Schlumberger Ltd., started a private offer to exchange up to $1.25 billion of its three senior notes for a new series of senior notes due 2028, according to a March 13 release.
The subsidiary is offering to exchange its 3% senior notes due 2020, 3.625% senior notes due 2022 and up to $500 million of its $1.75 billion 4% senior notes due 2025. The notes will be accepted based on a priority level, with the 2020 notes listed first, 2022 notes listed second and 2025 notes listed third. All old notes tenders will be canceled, and no new notes will be created if less than $500 million of new notes will be issued.
Holders who validly tender their old notes, do not validly withdraw their tenders and have their old notes accepted at or before 5 p.m. ET on March 26, subject to extension by the subsidiary, will receive an early participation payment of $50 per $1,000 principal amount of old notes.
In addition, the company reserves the right to increase the cap for its new notes due 2028 and the cap of its old notes due 2025 following the start of the exchange offer.
If the offer is fully subscribed as of March 26, holders who validly tender after this date will not have any of their old notes accepted for exchange. If the 2025 notes are subscribed up to the 2025 notes cap as of March 26, then holders who validly tender their notes after will not have any of their notes accepted for exchange.
The exchange offer will expire at 11:59 p.m. ET on April 9, unless extended or terminated by Schlumberger Holdings.