Nabors accepts early tenders for $275 million of 2020 notes

By Marisa Wong

Morgantown, W.Va., June 11 – Nabors Industries Ltd. announced the early results of wholly owned subsidiary Nabors Industries, Inc.’s cash tender offers for up to $275 million aggregate principal amount of its $592,292,000 outstanding 5% senior notes due 2020 and $637,999,000 outstanding 4 5/8% senior notes due 2021, with the 2021 notes subject to a tender sub-cap of $100 million.

As of 5 p.m. ET on June 10, the early tender time, holders had tendered $358.25 million of the 2020 notes and $365,402,000 of the 2021 notes.

Because the total amount tendered as of the early tender time exceeds the tender cap and because the 2020 notes have priority in acceptance of purchase over the 2021 notes, the company will accept for purchase $275 million of the tendered 2020 notes at a proration factor of 76.83% and none of the tendered 2021 notes.

All conditions to the offers were satisfied or waived as of the early tender time, according to a Tuesday press release. Nabors will therefore settle the early tendered 2020 notes on June 14.

The tender offers are set to expire at 11:59 p.m. ET on June 24. However, no notes tendered after the early tender time will be accepted for purchase.

As announced on May 28, the company is offering a total consideration per $1,000 principal amount of $1,015 for the 2020 notes and $985 for the 2021 notes. The total consideration includes an early tender premium of $50 per $1,000 principal amount of notes tendered by the early tender time.

In addition, the company will pay accrued interest to but excluding the settlement date.

Tenders may no longer be withdrawn.

Neither tender offer is not conditioned on the tender of any minimum amount of notes or completion of the other tender offer.

BofA Securities Inc. (888 292-0070 or 980 388-3646) is acting as the lead dealer manager for the tender offers. Global Bondholder Services Corp. (866 807-2200, attn.: corporate actions, contact@gbsc-usa.com) is tender and information agent.

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

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