TechnipFMC, in anticipation of the previously announced planned separation into two industry-leading, independent, publicly traded companies, announced that it intends to offer $850 million aggregate principal amount of senior unsecured notes due 2026.

 

This is a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended. 

 

The company is being split into TechnipFMC, a fully integrated technology and services provider, and Technip Energies, a leading engineering and technology player.

 

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 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.

 

The Notes have not been and will not be registered under the Securities Act or the securities laws of any jurisdiction, and may not be offered or sold in the United States or to, or for the account or benefit of, US persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

 

The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-US persons outside the US in reliance on Regulation S under the Securities Act. -- Tradearabia News Service