Nabors offers to trade seven notes for $300 million 9% notes due 2025

By Rebecca Melvin

New York, Oct. 30 – Nabors Industries, Inc., a wholly-owned subsidiary of Nabors Industries Ltd., announced an offer to exchange seven series of notes for up to $300 million new 9% senior priority guaranteed notes due 2025, according to a company release.

Each series will be exchanged upon the terms and conditions outlined in its exchange offering dated Oct. 29. The company also announced that it has completed a private exchange transaction under which $115 million of its 0.75% notes due 2024 were exchanged for $50,484,000 of the company’s newly issued 6.5% senior priority guaranteed notes due 2025.

Specifically, the tender considerations are as follows, with the notes listed in order of acceptance priority level:

• $1,000 per $1,000 note for its 4 5/8% notes due 2021, of which there is $129 million principal amount outstanding;

• $600 per $1,000 note for its 5½% notes due 2023, of which there is $32 million principal outstanding;

• $600 per $1,000 note for the 5.1% notes due 2023, of which there is $141 million outstanding;

• $375 per $1,000 note for the 5¾% notes due 2025, of which there is $775 million outstanding;

• $350 per $1,000 note for the ¾% notes due 2024, of which there is $460 million outstanding;

• $525 per $1,000 note for the 7¼% notes due 2026, of which there is $600 million outstanding; and

• $525 per $1,000 note for the 7½% notes due 2028, of which there is $400 million outstanding.

The tender considerations each include an early tender premium of $50.00 per $1,000 note. Holders who tender their notes at or prior to 5 p.m. ET on Nov. 12 are eligible to receive the early tender premium.

Holders will also receive accrued interest.

The exchanged notes are subject to proration with the maximum amount of old notes accepted being $200 million of acceptance priority level 5, $50 million of acceptance priority level 6 and $50 million of acceptance priority level 7.

The new notes mature Feb. 1, 2025 and will be Nabors' senior unsecured obligations, guaranteed by the parent and each of the subsidiaries that guarantee the parent's existing 7¼% senior guaranteed notes due 2026 and 7½% senior guaranteed notes due 2028 and certain lower tier subsidiaries of the parent that guarantee the company's revolving credit facility but do not currently guarantee the existing guaranteed notes. The new notes will be senior to all outstanding notes issued by the company and the parent including the existing guaranteed notes. And the guarantee of the new notes by lower tier subsidiaries will be contractually subordinated in right of payment with respect to such lower tier subsidiaries' guarantee of the company's revolving credit facility.

The exchange offer expires at 11:59 p.m. on Nov. 27.

Global Bondholder Services Inc. (866 470-3900, 212 430-3774, https://gbsc-usa.com/eligibility/nabors) is the information agent and exchange agent.

Nabors is an oil, natural gas and geothermal drilling contractor based in Hamilton, Bermuda.

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