Nabors Announces Offering of $550 million Senior Priority Guaranteed Notes

Rhea-AI Summary

Nabors (NYSE: NBR) announced on Nov 4, 2025 an offering of $550 million senior priority guaranteed notes due 2032 issued by Nabors Industries, Inc. (NII).

The Notes will be fully guaranteed by Nabors and certain indirect subsidiaries, will rank pari passu with NII's existing 9.125% senior priority guaranteed notes due 2030, and include guarantees from lower-tier subsidiaries that are contractually subordinated with respect to the A&R Credit Facility guarantees.

Nabors intends to use net proceeds, together with cash on hand, to redeem approximately $546.1 million aggregate principal of NII's 7.375% senior priority guaranteed notes due 2027. The Notes will be offered to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S and will not be registered under the Securities Act.

Positive

• Issuance of $550 million senior priority notes due 2032
• Proceeds intended to redeem ~$546.1 million of 2027 priority notes, extending maturity
• Notes rank pari passu with NII's existing 9.125% notes due 2030

Negative

• Guarantees by lower-tier subsidiaries are contractually subordinated to the A&R Credit Facility
• Notes will not be registered and are limited to Rule 144A and Regulation S investors, constraining liquidity

Insights

Credit Capital Markets Analyst

Nabors raises long‑dated debt to refinance near‑term notes, extending maturity while maintaining pari passu guarantee structure.

Nabors is offering $550,000,000 of senior priority guaranteed notes due 2032 that will rank pari passu with existing senior priority guaranteed notes due 2030. The proceeds, together with cash on hand, are intended to redeem the outstanding senior priority guaranteed notes due 2027, of which approximately $546,100,000 remain outstanding. The new notes carry the same structural guarantees as the existing priority notes, and several lower‑tier subsidiaries will provide guarantees that are contractually subordinated to their credit‑facility obligations.

The business mechanism is straightforward: replace near‑term maturities with longer‑dated debt to push out refinancing needs and preserve liquidity. Key dependencies and risks include successful placement with qualified institutional buyers under Rule 144A/Reg S, market reception at the priced yield (not disclosed here), and the contractual subordination of certain guarantors which preserves credit‑facility protections. Watch the final terms — especially coupon/yield and any covenants — and the completion or timing of the redemption of the 2027 notes; expect near‑term clarity on pricing within typical offering windows.

HAMILTON, Bermuda, Nov. 4, 2025 /PRNewswire/ -- Nabors Industries Ltd. (NYSE: NBR) ("Nabors") announced today that Nabors Industries, Inc. ("NII"), its indirect wholly-owned subsidiary, has commenced an offering of $550 million senior priority guaranteed notes due 2032 (the "Notes"). The Notes will be fully and unconditionally guaranteed by Nabors and certain of Nabors' indirect wholly-owned subsidiaries which also guarantee the Existing Senior Priority Guaranteed Notes (as defined below).

The Notes will be senior unsecured obligations of NII and will rank pari passu with NII's existing 9.125% Senior Priority Guaranteed Notes due 2030 (the "Existing Senior Priority Guaranteed Notes"). The Notes will be guaranteed, jointly and severally, by (i) Nabors, (ii) each of the subsidiaries that guarantee Nabors' existing 7.50% Senior Guaranteed Notes due 2028 and NII's existing 8.875% Senior Guaranteed Notes due 2031 (together, the "Existing Senior Guaranteed Notes") and (iii) certain lower-tier subsidiaries of Nabors that guarantee NII's amended & restated revolving credit facility (the "A&R Credit Facility") but do not currently guarantee the Existing Senior Guaranteed Notes (the "Lower Tier Notes Guarantors"), other than Nabors Alaska Drilling, Inc. The guarantee of the Notes by the Lower Tier Notes Guarantors will be contractually subordinated in right of payment with respect to the Lower Tier Notes Guarantors' guarantee of the A&R Credit Facility. Each of the guarantors of the Notes have guaranteed the Existing Senior Priority Guaranteed Notes and will guarantee the Notes on an equal and ratable basis.

Nabors intends to use the net proceeds from the offering, together with cash on hand, to redeem NII's outstanding 7.375% Senior Priority Guaranteed Notes due 2027 (the "Senior Priority Guaranteed Notes due 2027"). As of today's date, there is approximately $546.1 million in aggregate principal of Senior Priority Guaranteed Notes due 2027 outstanding.

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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities of Nabors or its subsidiaries, nor shall there be any offer, solicitation or sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

The information above includes forward-looking statements within the meaning of the Securities Act and the Securities Exchange Act of 1934, as amended. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. Nabors does not undertake to update these forward-looking statements.

About Nabors Industries

Nabors Industries is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.

Media Contacts:

For further information regarding Nabors, please contact William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara K. Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com.

 

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SOURCE Nabors Industries Ltd.

FAQ

What did Nabors (NBR) announce on Nov 4, 2025 regarding debt?

Nabors announced an offering of $550 million senior priority guaranteed notes due 2032 issued by Nabors Industries, Inc.

How will Nabors use the proceeds from the $550M NBR note offering?

Nabors intends to use net proceeds, together with cash on hand, to redeem approximately $546.1 million aggregate principal of NII's 7.375% notes due 2027.

Who guarantees the NBR 2032 notes and how do they rank?

The notes are fully guaranteed by Nabors and certain indirect subsidiaries and will rank pari passu with NII's existing 9.125% senior priority notes due 2030.

Are the Nabors (NBR) 2032 notes registered for public sale in the U.S.?

No; the notes will not be registered under the Securities Act and will be offered to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S.

Does any guarantor of the NBR notes have subordinated obligations?

Yes; certain lower-tier guarantors' guarantee of the notes is contractually subordinated in right of payment to their guarantee of the A&R Credit Facility.