Weatherford Redeems $236 Million of 2030 Notes, Cutting Annual Interest by $20 Million
Key Facts
On October 30, Weatherford completed the full redemption of its $236 million in 8.625% senior notes due in 2030, at a price equal to 100% of principal plus accrued and unpaid interest. The company issued the redemption notice on October 20 and set that date for completion, according to its statement attached to a filing with the U.S. Securities and Exchange Commission. Weatherford said it funded the transaction with available cash and that it will reduce annual cash interest expense by about $20 million. Chief Executive Girish Saligram said redeeming the remaining balance of the 2030 notes will lower future interest expense. The company added that the move will reduce gross leverage and improve adjusted free cash flow conversion going forward.
The move follows third-quarter results showing strong cash flow, with Weatherford reporting $192 million in cash flow from operating activities, up 39% year over year. Adjusted free cash flow was $155 million, up 57% from the year-earlier period. Revenue, meanwhile, was $1.143 billion, up 3% from the previous quarter but down 7% from a year earlier. Operating income was $153 million, up 43% sequentially but down 14% year over year. The comparison shows that sequential improvement in cash and operating performance coincided with continued weakness in revenue and operating income compared with last year.
The company reported net income of $120 million in the third quarter, up 48% year over year, while adjusted earnings before interest, taxes, depreciation and amortization reached $254 million, down 6% from the year-earlier period. Saligram said operational disruptions related to the conflict in the Middle East affected activity levels. He noted, however, that the diversity of the company's operations, cost discipline and execution supported margin expansion and cash generation. These indicators came amid mixed performance across net income, adjusted operating profit and revenue. Management's comments also reflect the continued impact of regional disruptions on activity despite improvement in some cash flow measures.
The retirement of the 2030 notes does not mean Weatherford's debt schedule is free of large maturities in coming years. As of September 30, 2026, the company had $1.2 billion of 6.75% senior notes due October 15, 2033. The notes were issued on October 6, 2025, and remain an outstanding obligation after the redemption of the older notes. Weatherford issued the 2030 notes on October 27, 2021, with total principal of $1.6 billion; by September 30, 2026, $236 million remained outstanding. The redemption removed the remaining balance of the 2021 issuance, while the 2033 notes remain part of the debt structure.
Weatherford reported cash and cash equivalents of $1.161 billion as of September 30, 2026, compared with $987 million on December 31, 2025. This balance provides context for using available cash to fund the note redemption, alongside the operating cash flow recorded in the third quarter. In the same quarter, Fitch and Standard & Poor's revised their outlooks on the company to positive from stable, affirming the rating at BB. Moody's also affirmed the company's rating at Ba2 with a positive outlook. These credit changes provide additional context for the move to reduce higher-cost debt, without eliminating the remaining maturities.
Looking to the fourth quarter, Saligram said Weatherford expects a meaningful increase in adjusted earnings before interest, taxes, depreciation and amortization, and that it raised its full-year adjusted free cash flow guidance. He added that recent events in the Middle East had weakened expectations for a rapid recovery. The company thus paired an expectation of improved earnings next quarter with acknowledgment that regional activity remains a constraint. Weatherford shares closed at $89.58 on October 29, according to market data cited by EL7. The company statement did not specify a subsequent date for the remaining 2033 debt maturity.