Baker Hughes Successfully Issues $6.5 Billion and Euro3 Billion of Senior Notes
MWN-AI** Summary
On March 11, 2026, Baker Hughes Company (NASDAQ: BKR) announced a successful issuance of $6.5 billion and €3 billion in senior unsecured notes, aimed at funding a significant cash consideration for its proposed acquisition of Chart Industries, Inc. This comprehensive debt issuance comprises five tranches of U.S. dollar notes and four tranches of euro notes. The U.S. offerings include $500 million in 4.050% Senior Notes due 2029, $1.25 billion in 4.350% Senior Notes due 2031, $750 million in 4.650% Senior Notes due 2033, $2 billion in 5.000% Senior Notes due 2036, and $2 billion in 5.850% Senior Notes due 2056. The euro offerings consist of €600 million in 3.226% Senior Notes due 2030, €900 million in 3.812% Senior Notes due 2034, €750 million in 4.193% Senior Notes due 2038, and €750 million in 4.737% Senior Notes due 2046.
The notes were issued by Baker Hughes Holdings LLC and its subsidiary Baker Hughes Holdings Co-Obligor, Inc., and are fully guaranteed by Baker Hughes. A special mandatory redemption clause is included, requiring a 101% repayment if the Chart acquisition does not close. Major financial institutions such as Goldman Sachs and Morgan Stanley acted as joint coordinators and book-running managers for both the U.S. and euro offerings.
This funding strategy marks a significant move for Baker Hughes as it seeks to enhance its strategic position in the energy technology sector. The offering was made under a shelf registration statement with the SEC, allowing potential investors to access detailed information regarding the offerings. Baker Hughes, a leader in energy solutions, continues to evolve its operations with a focus on cleaner and more efficient technologies.
MWN-AI** Analysis
Baker Hughes' recent successful issuance of $6.5 billion in U.S. senior unsecured notes and €3 billion in European senior unsecured notes reflects the company’s robust financial strategy and readiness to expand through strategic acquisitions, particularly its proposed acquisition of Chart Industries, Inc. This transaction is significant in that it not only bolsters Baker Hughes' market position but also enables diversification into the growing industrial gas market.
Investors should take note of the grading and yields on the notes, which range from 4.050% for the shortest maturity to 5.850% for the longest. This differentiates the pricing across various tenors, providing potential liquidity options for investors. The gradual step-up in yield can appeal to fixed-income investors seeking income with an acceptable level of risk, particularly in an environment where interest rates are anticipated to stabilize, if not decline, in the near term.
Baker Hughes is utilizing the proceeds from this debt issuance to finance part of the Chart acquisition. Investors should be mindful of the special mandatory redemption feature tied to this acquisition, indicating that if the acquisition does not close, the company will redeem the notes at a slight premium, which minimizes risk for bondholders.
From a broader market perspective, Baker Hughes’ strategic move comes at a time when energy transition discussions are intensifying. The company’s investments are geared towards enhancing its competitiveness in the energy technology market, aligning with global decarbonization objectives.
Potential investors should closely monitor Baker Hughes’ integration strategies post-acquisition and its ability to capitalize on synergies. The stock price may experience volatility, but long-term investors could find buying opportunities during this period of strategic expansion. As always, it is crucial to review the complete offering documents for an informed investment decision.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
HOUSTON and LONDON, March 11, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (NASDAQ: BKR) (“Baker Hughes” or the “Company”) today successfully issued $6.5 billion in debt consisting of five tranches of senior unsecured notes and €3 billion in debt consisting of four tranches of senior unsecured notes (collectively, the “notes”):
- $500 million 4.050% Senior Notes due 2029
- $1.25 billion 4.350% Senior Notes due 2031
- $750 million 4.650% Senior Notes due 2033
- $2 billion 5.000% Senior Notes due 2036
- $2 billion 5.850% Senior Notes due 2056
- €600 million 3.226% Senior Notes due 2030
- €900 million 3.812% Senior Notes due 2034
- €750 million 4.193% Senior Notes due 2038
- €750 million 4.737% Senior Notes due 2046
The notes were issued by Baker Hughes’ wholly owned subsidiary, Baker Hughes Holdings LLC (“BHH LLC”) and by BHH LLC’s wholly owned subsidiary Baker Hughes Holdings Co-Obligor, Inc. (“Co-Obligor” and, together with BHH LLC, the “Issuers”), and are fully and unconditionally guaranteed on a senior unsecured basis by Baker Hughes.
Baker Hughes intends to use the net proceeds of the notes to fund a portion of the cash consideration for Baker Hughes’ proposed acquisition of all outstanding shares of common stock of Chart Industries, Inc. (the “Chart acquisition”). The notes are subject to a special mandatory redemption (at a price equal to 101% of the aggregate principal amount of such series of notes) under certain circumstances if the Chart acquisition is not consummated.
Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as joint global coordinators and joint book-running managers for the U.S. dollar offering, and Goldman Sachs & Co. LLC and Morgan Stanley & Co. International plc acted as joint global coordinators and joint book-running managers for the euro offering. Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC acted as joint book-running managers for the U.S. dollar offering, and Citigroup Global Markets Limited, Deutsche Bank AG, London Branch and J.P. Morgan Securities plc acted as joint book-running managers for the euro offering.
BofA Securities, Inc., Barclays Capital Inc., HSBC Securities (USA) Inc., MUFG Securities Americas Inc. and UniCredit Capital Markets LLC acted as passive book-running managers for the U.S. dollar offering. BNP Paribas Securities Corp., SG Americas Securities, LLC and Standard Chartered Bank acted as senior co-managers for the U.S. dollar offering. Intesa Sanpaolo IMI Securities Corp., RBC Capital Markets, LLC, BBVA Securities Inc., Academy Securities, Inc., Siebert Williams Shank & Co., LLC, The Standard Bank of South Africa Limited and Loop Capital Markets LLC acted as co-managers for the U.S. dollar offering.
Merrill Lynch International, Barclays Bank PLC, HSBC Bank plc, MUFG Securities EMEA plc and UniCredit Bank GmbH acted as passive book-running managers for the euro offering. BNP PARIBAS, Société Générale and Standard Chartered Bank acted as senior co-managers for the euro offering. Intesa Sanpaolo IMI Securities Corp., RBC Europe Limited, Banco Bilbao Vizcaya Argentaria, S.A., Academy Securities, Inc., Siebert Williams Shank & Co., LLC, The Standard Bank of South Africa Limited and Loop Capital Markets LLC acted as co-managers for the euro offering.
The notes offerings were made pursuant to an effective shelf registration statement and prospectus and related prospectus supplements filed by the Issuers with the U.S. Securities and Exchange Commission (the “SEC”). Before investing, potential investors should read the prospectus and the related prospectus supplements, the shelf registration statement and other documents that Baker Hughes has filed with the SEC for more complete information about Baker Hughes and these offerings.
Copies of the prospectus supplement and related prospectus for the U.S. dollar offering can be obtained from Goldman Sachs & Co. LLC at 1-866-471-2526, Morgan Stanley & Co. LLC at 1-866-718-1649, Citigroup Global Markets Inc. at 1-800-831-9146, Deutsche Bank Securities Inc. at 1-800-503-4611 or J.P. Morgan Securities LLC at 1-212-834-4533.
Copies of the prospectus supplement and related prospectus for the euro offering can be obtained from Goldman Sachs & Co. LLC at 1-866-471-2526, Morgan Stanley & Co. International plc at 1-866-718-1649, Citigroup Global Markets Limited at 1-800-831-9146, Deutsche Bank AG, London Branch at 1-800-503-4611 or J.P. Morgan Securities plc (for non-U.S. investors) at 44 207 134 2468 or J.P. Morgan Securities LLC (for U.S. investors) at 1-212-834-4533.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities, including the notes. There shall not be any sale of the securities described herein in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Forward-Looking Statements
This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Baker Hughes’ annual report on Form 10-K and those set forth from time to time in other filings with the SEC. The documents are available through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
The Company’s expectations regarding its business outlook and business plans; the business plans of its customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.
About Baker Hughes:
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
For more information, please contact:
Investor Relations
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
Media Relations
Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com
FAQ**
How might the issuance of $6.5 billion in senior unsecured notes by Baker Hughes Company (BKR) affect its financial position in Houston compared to London?
What implications could Baker Hughes Company's (BKR) acquisition of Chart Industries have for its market competitiveness in Houston's energy sector versus London's?
In what ways could the 3.226% to 5.850% interest rates on Baker Hughes Company BKR's senior notes impact investor sentiment in Houston compared to London?
How does Baker Hughes Company BKR plan to use the proceeds from its debt issuance to influence its growth strategy in Houston versus its operational footprint in London?
**MWN-AI FAQ is based on asking OpenAI questions about Baker Hughes Company (NASDAQ: BKR).
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