Nabors Announces Offering of Senior Guaranteed Notes
Rhea-AI Summary
Nabors Industries (NYSE: NBR) has announced that its subsidiary, Nabors Industries, Inc. (NII), is offering $550 million in senior guaranteed notes due 2031. These notes will be fully guaranteed by Nabors and its subsidiaries that guarantee the existing 7.50% senior notes due 2028. The new notes will rank equally with NII's existing senior obligations.
Nabors plans to use the proceeds, along with cash on hand, to redeem all of its 7.25% senior guaranteed notes due 2026. Any excess funds will be used for general corporate purposes, potentially including repayment of other outstanding debt. The notes will be offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act.
Positive
- Offering $550 million in new senior guaranteed notes due 2031
- Redeeming all 7.25% senior guaranteed notes due 2026
- Potential repayment of other outstanding indebtedness
Negative
- Increasing long-term debt obligations
- Notes not registered under Securities Act, limiting potential buyers
News Market Reaction – NBR
In the trading session that priced this news, NBR gained 4.28%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The Notes will be senior unsecured obligations of NII and will rank pari passu in right of payment with all of NII's existing and future senior obligations, including Nabors'
Nabors intends to use the net proceeds from this offering, along with cash on hand, to redeem all of its
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 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 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
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SOURCE Nabors Industries Ltd.