By Paul A. Harris
Portland, Ore., Nov. 18 – Nabors Industries, Inc. priced $700 million of senior priority guaranteed notes due May 2027 (B3/B-/B) at par to yield 7 3/8%, according to market sources.
The notes were expected to price on Friday, but timing was accelerated and the deal cleared the market on Thursday.
The notes were marketed in the mid-to-high 7% area.
There is a make-whole call until May 15, 2024 at Treasuries plus 50 basis points. With annual step-downs starting on May 15, 2024, the notes can be redeemed at 103.688, then 101.844 and then par in the final year.
Goldman Sachs & Co. LLC is the left bookrunner. Morgan Stanley & Co. LLC, Citigroup Global Markets, Inc., Wells Fargo Securities, LLC and HSBC Securities (USA) LLC are the joint bookrunners.
The Rule 144A and Regulation S 5.5-year notes become callable after 2.5 years at par plus 50% of the coupon.
The Hamilton, Bermuda-based oil and gas drilling contractor plans to use the proceeds to pay off its 2018 revolver and for general corporate purposes.
| Issuer: | Nabors Industries, Inc.
|
| Amount: | $700 million
|
| Issue: | Senior priority guaranteed notes
|
| Maturity: | May 15, 2027
|
| Bookrunners: | Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets, Inc., Wells Fargo Securities, LLC and HSBC Securities (USA) LLC
|
| Senior co-manager: | Academy Securities, Inc.
|
| Co-managers: | B. Dyson Capital Advisors
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | Treasuries plus 609 bps
|
| Call features: | Make-whole call until May 15, 2024 at Treasuries plus 50 bps; starting on May 15, 2024 at 103.688; starting May 15, 2025 at 101.844; starting May 15, 2026 at par
|
| Equity clawback: | Up to 35% at 107.375
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody’s: B3
|
| S&P: B-
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Mid-to-high 7% area
|
| Cusip: | 62957HAJ4, U6295YAM5
|
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