09:43 AM EDT, 09/10/2024 (MT Newswires) -- Helmerich & Payne (HP) said Tuesday it plans to launch a private placement of senior unsecured notes to partially finance the acquisition of KCA Deutag International.

The companies announced in July an about $1.97 billion cash deal for Helmerich to acquire the drilling firm.

Helmerich said Tuesday that it intends to use the net proceeds from the offering, along with the proceeds of its term loan credit facility and cash on hand, to fund the planned acquisition. The net proceeds will also be used to repay certain of KCA's outstanding indebtedness and pay related fees and expenses, Helmerich added.

The company said the notes will be redeemed if the acquisition does not proceed by Oct. 25, 2025.

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