Nabors Industries Ltd (NYSE:NBR) Prices $800 Million In Senior Unsecured Debt Offering

1641

Nabors Industries Ltd (NYSE:NBR) reported that its 100% owned subsidiary unit, Nabors Industries, Inc. has priced $800 million in senior unsecured notes to be paid in 2025, in the private placement offering it reported earlier. The notes will have interest at a yearly rate of 5.75%, and are being presented to shareholders at an initial rate of 100% of par. The notes will be unconditionally and fully guaranteed by Nabors.

The buzz

Nabors plans to use the net proceeds from this private placement offering to retire indebtedness of company and its subsidiaries, counting all of NII’s due 6.15% senior notes payable February 2018. The company intends to primarily use the net proceeds from this private placement offering to prepay amounts presently due under NII’s unsecured commercial paper borrowings and revolving credit facility and subsequently draw on this facility or use cash to pay NII’s due 6.15% senior notes payable February 2018 at maturity. The respective facility matures in 2020 while the weighted average interest rate was 2.59% as of the close of September 30, 2017.

In unrelated news, ADES International Holding finalized a sale and purchase deal with Nabors Industries subsidiary, to buy operating offshore jack up rigs presently contracted in the Persian Gulf. This deal is for $83 million, payable in ADES stock and cash. Terms also call for the current drilling deals linked with the rigs to be moved to ADES. Closing is expected in this year, subject to renewal of prevailing multiyear contract terms.

Nabors reported that the drilling units being bought are three ultra-shallow rigs. These have been in relentless service for over ten years. They were lately refurbished, with 5-year evaluations already performed on two rigs. Assessment on the third rig is planned for 2018. Post-closing, ADES will boast six rigs under deal in the gulf.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.