Nabors Prices $700 million in Senior Priority Guaranteed Notes

Rhea-AI Summary

Nabors (NYSE: NBR) priced $700 million of senior priority guaranteed notes due 2032, upsized from $550 million, at an annual coupon of 7.625% and initial price of 100% of par. The offering is expected to close on November 10, 2025 and to generate approximately $690.2 million in net proceeds after discounts.

Nabors intends to use proceeds to redeem about $546.1 million aggregate principal of senior priority guaranteed notes due 2027, with remaining proceeds for general corporate purposes. The notes will be senior unsecured obligations of NII and guaranteed on an equal and ratable basis, with certain lower-tier guarantors contractually subordinated to the A&R Credit Facility.

Positive

• Offering upsized from $550M to $700M
• Expected net proceeds of approximately $690.2M
• Proceeds earmarked to redeem $546.1M of 2027 notes, extending maturity to 2032
• Notes priced at 100% of par with a 7.625% coupon

Negative

• Notes are senior unsecured obligations with no collateral
• Guarantee by certain lower-tier subsidiaries is contractually subordinated to the A&R Credit Facility
• Offering limited to Rule 144A and Regulation S buyers, restricting U.S. retail access

Insights

Capital Markets Analyst

Nabors upsized a $700,000,000 senior note offering due 2032, raising ~$690,200,000 net to redeem 2027 paper and for general purposes.

The company priced the new senior priority guaranteed notes at an annual coupon of 7.625% and sold them at par. The notes are guaranteed by Nabors and specified subsidiaries on an equal and ratable basis with existing senior priority guaranteed notes due 2030, and certain lower‑tier guarantors will have contractually subordinated payment rights relative to the A&R Credit Facility guaranty.

The deal funds the planned redemption of approximately $546,100,000 of Senior Priority Guaranteed Notes due 2027, with remaining proceeds for general corporate purposes. Key near-term items to monitor include the expected closing on November 10, 2025, successful redemption mechanics for the 2027 notes and any disclosures at closing about covenant or guarantor changes.

HAMILTON, Bermuda, Nov. 4, 2025 /PRNewswire/ -- Nabors Industries Ltd. (NYSE: NBR) ("Nabors") today announced that Nabors Industries, Inc. ("NII") has priced $700 million in aggregate principal amount of senior priority guaranteed notes due 2032 (the "Notes"). The offering was upsized from the $550 million in aggregate principal amount of Notes that Nabors had announced earlier today. The Notes will bear interest at an annual rate of 7.625% and are being offered to investors at an initial price of 100.0% of par. 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 sale of the Notes to the initial purchasers is expected to close on November 10, 2025, subject to customary closing conditions, and is expected to result in approximately $690.2 million in net proceeds to Nabors after deducting the discount to initial purchasers.

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 to redeem NII's outstanding 7.375% Senior Priority Guaranteed Notes due 2027 (the "Senior Priority Guaranteed Notes due 2027"). The remaining net proceeds will be used for general corporate purposes. 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 size and coupon did Nabors (NBR) price for the 2032 notes on November 4, 2025?

Nabors priced $700 million of senior priority guaranteed notes due 2032 at a 7.625% annual coupon.

When will the Nabors (NBR) senior notes offering close and what are the expected net proceeds?

The sale is expected to close on November 10, 2025 and to generate approximately $690.2 million in net proceeds.

How will Nabors (NBR) use the proceeds from the $700M 2032 note offering?

Nabors intends to use the proceeds to redeem about $546.1 million of senior priority guaranteed notes due 2027; remaining proceeds for general corporate purposes.

Are the Nabors (NBR) 2032 notes secured or guaranteed?

The notes are senior unsecured obligations of NII and are guaranteed on an equal and ratable basis by Nabors and specified subsidiaries; some lower-tier guarantors are contractually subordinated regarding the A&R Credit Facility.

Was the Nabors (NBR) offering upsized from an earlier amount on November 4, 2025?

Yes. The offering was upsized from an initial announcement of $550 million to $700 million.

Can U.S. retail investors buy the Nabors (NBR) 2032 notes directly?

No. The notes are being offered to qualified institutional buyers under Rule 144A and to persons outside the U.S. under Regulation S, and are not registered for public sale in the U.S.