Filed Pursuant to Rule 433
Registration No. 333-145888
Baker Hughes Incorporated
Pricing Term Sheet
Relating to the Prospectus Supplement dated October 23, 2008
6.50% Notes due 2013
7.50% Notes due 2018
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Issuer: | | Baker Hughes Incorporated |
Expected Ratings: | | A2 / A / A (Moody’s / S&P / Fitch) |
Format: | | SEC Registered |
Ranking: | | Senior Notes |
Trade Date: | | October 23, 2008 |
Settlement Date: | | T+3; October 28, 2008 |
Bookrunners: | | Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. |
Senior Co-Managers: | | Barclays Capital Inc., Greenwich Capital Markets, Inc., Lazard Capital Markets LLC, UBS Securities LLC |
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Junior Co-Managers: | | BBVA Securities, Inc., Danske Markets Inc., Goldman, Sachs & Co., Morgan Stanley & Co. Incorporated, UCI Capital Markets, Inc. |
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Title: | | 2013 Notes | | 2018 Notes |
Size: | | US $500,000,000 | | US $750,000,000 |
Maturity: | | November 15, 2013 | | November 15, 2018 |
Interest Payment Dates: | | May 15 and November 15 | | May 15 and November 15 |
First Payment Date: | | May 15, 2009 | | May 15, 2009 |
Coupon: | | 6.50% | | 7.50% |
Price to Public: | | 99.762% | | 99.444% |
Benchmark Treasury: | | 3.125% due September 30, 2013 | | 4.00% due August 15, 2018 |
Benchmark Treasury Price: | | 102-20 | | 103-14+ |
Benchmark Treasury Yield: | | 2.555% | | 3.579% |
Spread to Benchmark Treasury: | | +400 bps | | +400 bps |
Yield to Maturity: | | 6.555% | | 7.579% |
Make-Whole Call: | | T+50 bps | | T+50 bps |
CUSIP: | | 057224AX5 | | 057224AY3 |
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Banc of America Securities LLC toll free at 1-800-294-1322, Citigroup Global Markets Inc. toll-free at 1-877-858-5407 or J.P. Morgan Securities Inc. collect at 1-212-834-4533.
This Pricing Term Sheet is qualified in its entirety by reference to the Prospectus Supplement referenced above. The information in this Pricing Term Sheet supplements the Prospectus Supplement and supersedes the information in the Prospectus Supplement to the extent inconsistent with the information set forth in the Prospectus Supplement.
