LONDON: TechnipFMC announced that TechnipFMC priced its previously announced offering of $1.0 billion aggregate principal amount of 6.5% senior unsecured notes due 2026 in a private offering.
TechnipFMC previously announced planned separation (Spin-off) into two industry-leading, independent, publicly traded companies: TechnipFMC, a fully integrated technology and services provider, and Technip Energies, a leading engineering and technology player.
The aggregate principal amount of the Notes to be issued in the offering has been increased from the previously announced $850 million to $1.0 billion.
TechnipFMC intends to use the net proceeds from the offering of the Notes, together with cash on hand, to (i) fully repay and terminate certain of TechnipFMC’s existing indebtedness, (ii) pay fees and expenses related to the Spin-off and (iii) provide working capital and for general corporate purposes for TechnipFMC.
The closing of the offering is anticipated to take place on or about January 29, 2021, subject to customary closing conditions.
The Spin-off is expected to be completed in the first quarter of 2021, subject to customary conditions and regulatory approvals.
In order to provide flexibility in the current environment, if the Spin-off is not consummated on or prior to July 31, 2021 or the Spin-off is terminated or abandoned at any time prior to July 31, 2021, then TechnipFMC will be required to redeem all of the Notes at a redemption price equal to 100% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, if any, to but not including the date of the redemption, which shall be determined in accordance with the confidential offering memorandum.
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TechnipFMC is a global leader in the energy industry; delivering projects, products, technologies and services.
Organized in three business segments — Subsea, Surface Technologies and Technip Energies — the company is uniquely positioned to deliver greater efficiency across project lifecycles from concept to project delivery and beyond.
Each of our approximately 36,000 employees is driven by a steady commitment to clients and a culture of project execution, purposeful innovation, challenging industry conventions, and rethinking how the best results are achieved.