Nabors tenders for up to $800 million of four series of notes

By Sarah Lizee

Olympia, Wash., Jan. 6 – Nabors Industries Ltd. said wholly owned subsidiary Nabors Industries, Inc. launched cash tender offers to purchase up to $800 million of notes of four series of notes.

The series covered by the offer are the $501,003,000 5½% senior notes due 2023, $634,999,000 4 7/8% senior notes due 2021, $337,278,000 5.1% senior notes due 2023 and $289,487,000 5% senior notes due 2020.

The 5.1% notes have a tender sub-cap of up to $100 million and the 5% notes have a tender sub-cap of up to $50 million.

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

• $1,010 per $1,000 note for the 5½% notes;

• $1,022.50 per $1,000 note for the 4 7/8% notes;

• $940 per $1,000 note for the 5.1% notes; and

• $1,015 per $1,000 note for the 5% notes.

The tender considerations each include an early tender premium of $50 per $1,000 note. Holders who tender their notes at or prior to 5 p.m. ET on Jan. 17 will receive the early tender premium.

Holders will also receive accrued interest.

The company also launched consent bids for the 5½% and 4 7/8% notes individually to amend some provisions of the indentures governing the notes.

The proposed amendments would eliminate substantially all of the restrictive covenants and certain events of default, and reduce the minimum notice period required for redemptions of the applicable series of notes to three business days from 20 days.

The tender offers and consent bids will expire at 5 p.m. ET on Feb. 4.

Tendered notes and consents may be validly withdrawn at or prior to 5 p.m. ET on Jan. 17.

Tendered notes accepted for purchase may be subject to proration.

Any holder who tenders 5½% notes or 4 5/8% notes must also deliver a consent to the proposed amendments.

Holders may not deliver consents without also tendering their notes.

The dealer managers are BofA Securities (888 292-0070), MUFG (877 744-4532), Mizuho Securities (866 271-7403) and Wells Fargo Securities (866 309-6316).

The information agent is Global Bondholder Services Corp. (212 430-3774, 866 794-2200 or contact@gbsc-usa.com).

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

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