Baker Hughes Announces Pricing Of Secondary Offering By GE

(RTTNews) - Baker Hughes, a GE company (BHGE) announced the pricing of a secondary offering of 92 million shares of BHGE Class A common stock, par value $0.0001 per share, by General Electric Company or "GE" or the "selling stockholder" at a price to the public of $23.00 per share.

The underwriters have a 30-day option to purchase up to an additional 9,200,000 shares of Class A common stock from the selling stockholder. The offering is expected to close on November 16, 2018, subject to customary closing conditions.

On November 5, 2018, Board of Directors declared a cash dividend of $0.18 per share of our outstanding Class A common stock, payable on November 30, 2018 to holders of record on November 16, 2018. If the offering closes on November 16, 2018, as expected, purchasers of shares in this offering will be entitled to receive this dividend.

BHGE said it is not offering any shares of Class A common stock in the offering and will not receive any proceeds from the sale of shares in the offering.

In addition, BHGE announced that it has agreed to repurchase from one or more of GE and its affiliates, in a privately negotiated transaction, 65 million shares of BHGE Class B common stock, par value $0.0001 per share, together with an equal number of associated membership interests of Baker Hughes, a GE company, LLC and a number of shares of Class B common stock, together with an equal number of associated LLC units, corresponding to the number of Option Shares not purchased by the underwriters pursuant to the Option, in each case at a price equal to the price per share at which the underwriters will purchase shares of Class A common stock from GE in the offering.

The maximum aggregate purchase price for the share repurchase is $1.5 billion. The base share repurchase is expected to close on November 16, 2018.

The company noted that it intends to fund the share repurchase with cash on hand and other available sources of liquidity.