Nabors Industries Launches $550 Million Senior Priority Guaranteed Notes Offering

Nabors Industries Ltd. (NYSE: NBR), a leading provider of technology to the energy sector, has announced the commencement of an offering for senior priority guaranteed notes totaling $550 million, due in 2032. This initiative was detailed in a recent press release, highlighting Nabors' indirect wholly-owned subsidiary, Nabors Industries, Inc. (NII), as the issuer of these new financial instruments.

The new notes will hold the status of senior unsecured obligations that will rank equally with Nabors' existing 9.125% Senior Priority Guaranteed Notes set to mature in 2030. Each note will be fully guaranteed by Nabors, along with certain subsidiaries that also currently guarantee existing senior priority notes. This arrangement is aimed at bolstering investor confidence while enhancing Nabors’ financial standing.

To ensure clarity for investors, the offered notes will also be jointly guaranteed by the same subsidiaries responsible for guaranteeing Nabors’ existing 7.50% Senior Guaranteed Notes due in 2028. Additionally, certain lower-tier subsidiaries of Nabors that back NII's revolving credit facility will also participate in these guarantees. However, it's important to note that the guarantee from these Lower Tier Notes Guarantors will be subordinated in terms of payment rights when compared to their backing of the revolving credit facility.

Nabors plans to utilize the net proceeds from the notes' sale, along with cash on hand, to redeem approximately $546.1 million of outstanding 7.375% Senior Priority Guaranteed Notes that are due in 2027. This move reflects Nabors' strategic focus on improving its capital structure and reducing debt obligations, enhancing its overall financial stability.

Offering Conditions

The offering will target qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. For potential investors located outside the United States, the offering will be compliant with Regulation S and various exemptions related to registration and prospectus requirements in the relevant jurisdictions.

Importantly, this offering does not imply a public solicitation for the purchase of the notes within the United States. The notes will not be registered under the Securities Act, thus confining their availability primarily to qualified investors and mitigating regulatory complexities.

Nabors stresses that this press release should not be interpreted as a solicitation for investment. They emphasize that any forward-looking statements tied to this announcement face inherent risks and uncertainties, consistent with their filings to the Securities and Exchange Commission. As such, the company's actual outcomes may deviate significantly from any projections made.

About Nabors Industries

Founded in Hamilton, Bermuda, Nabors Industries has cemented its position as an international leader in energy technology, operating in more than 20 countries globally. Their extensive portfolio encompasses drilling innovation, engineering, automation, and manufacturing, which all contribute to safe and efficient energy production. With a commitment to advancing toward a lower-carbon future, Nabors is redefining industry standards through technological advancements and strategic initiatives.

This announcement marks a significant step for Nabors Industries as it seeks to solidify its market presence and enhance its operational capacities, indicative of the company’s resilience in a competitive landscape. Investors and industry observers alike will be closely watching how this offering unfolds and what implications it holds for the company’s future direction.

For further inquiries regarding this offering, interested parties are encouraged to reach out to the designated media contacts for Nabors, as outlined in their recent communications.