Baker Hughes agrees to buy Chart Industries


The oilfield-services firm entered into a commitment letter with Goldman Sachs and Morgan Stanley for a 364-day loan facility of as much as US$14.9bil. — Bloomberg

HOUSTON: Baker Hughes Co has lined up the biggest blue-chip debt financing for an acquisition this year after cinching a US$9.6bil deal to buy Chart Industries Inc.

The oilfield-services firm entered into a commitment letter with Goldman Sachs Group Inc and Morgan Stanley for a 364-day loan facility of as much as US$14.9bil, according to a Tuesday filing.

The funding would be used “in the event that Baker Hughes has not obtained other permanent financing” before the purchase closes by mid-2026, the company said.

That envisioned financing includes senior-unsecured debt facilities and term loans.

The bridge facility is the largest among investment-grade borrowers for an acquisition since last August.

Mars Inc obtained as much as US$29bil of committed financing for its purchase of Kellanova, before selling US$26bil of bonds to help fund that takeover.

At least one big bridge loan this year has occurred outside the buyout space. — Bloomberg

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