Halliburton Company (NYSE:HAL) announced the pricing of an offering of $7.5 billion aggregate principal amount of senior notes. The notes are being issued in five tranches: $1.25 billion of 5-year notes bearing interest at a fixed rate of 2.70% per year and maturing on November 15, 2020; $1.25 billion of 7-year notes bearing interest at a fixed rate of 3.375% per year and maturing on November 15, 2022; $2 billion of 10-year notes bearing interest at a fixed rate of 3.80% per year and maturing on November 15, 2025; $1 billion of 20-year notes bearing interest at a fixed rate of 4.85% per year and maturing onNovember 15, 2035; and $2 billion of 30-year notes bearing interest at a fixed rate of 5.00% per year and maturing on November 15, 2045. The offering is expected to close on November 13, 2015.
Halliburton intends to use the net proceeds of the offering for general corporate purposes, including financing a portion of the cash consideration component of Halliburton’s pending acquisition of Baker Hughes Incorporated (“Baker Hughes”). In the event that the Baker Hughes acquisition is not consummated, Halliburton intends to use the net proceeds from the sale of the 2025 notes, the 2035 notes and the 2045 notes for general corporate purposes. The 2020 notes and the 2022 notes will be subject to a special mandatory redemption if the Baker Hughes acquisition is not consummated. Pending the application of the net proceeds to finance the Baker Hughes acquisition, Halliburton may temporarily invest the net proceeds in cash equivalents or short-term investments. (Original Source)
Shares of Halliburton Company closed yesterday at $38.41. HAL has a 1-year high of $58 and a 1-year low of $30.93. The stock’s 50-day moving average is $38.02 and its 200-day moving average is $41.48.
On the ratings front, Halliburton has been the subject of a number of recent research reports. In a report issued on October 22, Argus analyst John Gelcius reiterated a Buy rating on HAL, with a price target of $53, which implies an upside of 38.0% from current levels. Separately, on October 21, Citigroup’s Scott Gruber maintained a Buy rating on the stock and has a price target of $48.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Gelcius and Scott Gruber have a total average return of -15.8% and 7.5% respectively. Gelcius has a success rate of 27.0% and is ranked #3744 out of 3827 analysts, while Gruber has a success rate of 64.1% and is ranked #929.
Overall, 2 research analysts have assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $44.00 which is 14.6% above where the stock closed yesterday.
Halliburton Co is a provider of services and products to the energy industry related to the exploration, development, and production of oil and natural gas.