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.
The 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").
The 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").
Under 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 Issuer will
redeem any additional Unsecured Notes.
The Secured Notes are being offered only to persons reasonably
believed to be qualified institutional buyers in reliance on Rule
144A under the Securities Act of 1933, as amended (the "Securities
Act"), and outside the United
States, only to non-U.S. investors pursuant to Regulation S
under the Securities Act.
The Secured Notes will not be registered under the Securities
Act or any state securities laws and may not be offered or sold in
the United States absent an
effective registration statement or an applicable exemption from
registration requirements or a transaction not subject to the
registration requirements of the Securities Act or any state
securities laws.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the Secured Notes or any other
securities and shall not constitute an offer, solicitation or sale
in any jurisdiction in which such offer, solicitation or sale would
be unlawful.
Forward Looking Statements
This news release contains forward-looking statements
concerning, among other things, the Company's strategy and
financing plans and goals. These forward-looking statements are
also generally identified by the words "intends", "believe,"
"project," "expect," "anticipate," "estimate," "outlook," "budget,"
"intend," "strategy," "plan," "guidance," "may," "should," "could,"
"will," "would," "will be," "will continue," "will likely result,"
and similar expressions, although not all forward-looking
statements contain these identifying words. Such statements are
based upon the current beliefs of Weatherford's management and are subject to
significant risks, assumptions, and uncertainties. Should one or
more of these risks or uncertainties materialize, or underlying
assumptions prove incorrect, actual results may vary materially
from those indicated in our forward-looking statements. Readers are
cautioned that forward-looking statements are only predictions and
may differ materially from actual future events or results,
including the price and price volatility of oil and natural gas;
the extent or duration of business interruptions, demand for oil
and gas and fluctuations in commodity prices associated with
COVID-19 pandemic; general global economic repercussions related to
COVID-19 pandemic; the macroeconomic outlook for the oil and gas
industry; and operational challenges relating to the COVID-19
pandemic and efforts to mitigate the spread of the COVID-19 virus
and COVID-19 variants, including logistical challenges, protecting
the health and well-being of our employees, remote work
arrangements, performance of contracts and supply chain
disruptions; financial market conditions and availability of
capital; our ability to generate cash flow from operations to fund
our operations; and the realization of additional cost savings and
operational efficiencies. Forward-looking statements are also
affected by the risk factors described in the Company's Annual
Report on Form 10-K for the year ended December 31, 2020, and those set forth from
time-to-time in the Company's other filings with the Securities and
Exchange Commission. The Company undertakes no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events, or otherwise, except to
the extent required under federal securities laws.
About Weatherford
Weatherford is a leading global
energy services company. Operating in approximately 75 countries,
the Company answers the challenges of the energy industry with its
global talent network of approximately 17,000 team members and
approximately 365 operating locations, including manufacturing,
research and development, service, and training facilities.
Contact:
Weatherford Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
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SOURCE Weatherford International plc