Nabors Prices $700 Million in Senior Priority Guaranteed Notes Offering
November 18, 2021 at 06:37 pm EST
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Nabors Industries Ltd. announced that Nabors Industries Inc. ("NII") has priced $700 million in aggregate principal amount of senior priority guaranteed notes due 2027 (the "Notes") in the offering it announced earlier. The Notes will bear interest at an annual rate of 7.375% and are being offered to investors at an initial price of 100% of par. The Notes will be fully and unconditionally guaranteed by Nabors and certain of Nabors' indirect wholly-owned subsidiaries consisting of Nabors Drilling Holdings Inc., Nabors Drilling Technologies USA Inc., Nabors International Finance Inc., Nabors Lux Finance 1, Nabors Lux 2, Nabors Global Holdings Limited, Nabors International Management Limited, Nabors Holdings Ltd. and Nabors Drilling Canada Limited. The sale of the Notes to the initial purchasers is expected to close on November 23, 2021, subject to customary closing conditions, and is expected to result in approximately $688.9 million in net proceeds to Nabors after deducting offering expenses payable by Nabors. Nabors intends to use the net proceeds from the offering to repay approximately $457.5 million of the amount outstanding under NII's Revolving Credit Facility and the remainder for general corporate purposes. As of today's date, there is $585 million outstanding under the Revolving Credit Facility, excluding $62.6 million of letters of credit. The Notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States in accordance with Regulation S under the Securities Act and applicable exemptions from registration, prospectus or like requirements under the laws and regulations of the relevant jurisdictions outside the United States. The Notes will not be registered under the Securities Act and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will also not be registered in any jurisdiction outside of the United States and no action or steps will be taken to permit the offer of the Notes in any such jurisdiction where any registration or other action or steps would be required to permit an offer of the Notes. The Notes will not be offered or sold in any such jurisdiction except pursuant to an exemption from, or in a transaction not subject to, the relevant requirements of laws and regulations of such jurisdictions.
Nabors Industries Ltd. owns and operates a land-based drilling rig fleet. The Company is a provider of offshore platform drilling rigs in the United States and international markets. The Company operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions and Rig Technologies. Its services include tubular running services, wellbore placement solutions, directional drilling, measurement-while-drilling (MWD), logging-while-drilling (LWD) systems and services, equipment manufacturing, rig instrumentation and optimization software. Its United States fleet consists of approximately 171 alternating current (AC) rigs and 11 silicon-controlled rectifier (SCR) land rigs. Its international fleet consists of approximately 117 land-based drilling rigs located in approximately 14 countries. Through its Drilling Solutions, the Company offers specialized drilling technologies, such as patented steering systems and rig instrumentation software systems.