Helmerich & Payne, Inc. (NYSE: HP) (“H&P” or the “Company”) announced today the pricing of its $1.25 billion senior notes offering. The offering consists of three tranches of notes (collectively, the “Notes”):
- $350 million of 4.650% senior notes due 2027, priced at 99.958% of their face value
- $350 million of 4.850% senior notes due 2029, priced at 99.883% of their face value
- $550 million of 5.500% senior notes due 2034, priced at 99.670% of their face value
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”
The offering is expected to close on September 17, 2024, pending satisfaction of customary closing conditions. The net proceeds from the offering, combined with funds from the Company’s term loan credit facility and cash on hand, will be used to finance the acquisition of KCA Deutag International Limited (“KCAD”), repay certain of KCAD’s outstanding debt, and cover related fees and expenses. Additionally, the offering will reduce the commitments under the Company’s existing bridge loan facility for the acquisition to approximately $332 million.
The Notes will be subject to a “special mandatory redemption” if the acquisition does not close by October 25, 2025, or if the Company informs the trustee that it will not proceed with the acquisition.
The Notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state or other jurisdiction’s securities laws and may not be offered or sold in the U.S. or to U.S. persons without registration or an applicable exemption.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of the Notes or any other securities of the Company in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction. The offering is being conducted solely pursuant to a private offering memorandum and only to individuals and in jurisdictions as permitted under applicable law.
About Helmerich & Payne, Inc.
Founded in 1920, Helmerich & Payne, Inc. is dedicated to providing industry-leading drilling productivity and reliability. The Company operates with the highest levels of integrity, safety, and innovation to deliver exceptional results for customers and returns for shareholders. Through its subsidiaries, H&P designs, fabricates, and operates high-performance drilling rigs in both conventional and unconventional plays globally. The Company also develops and implements advanced automation, directional drilling, and survey management technologies.
