Nabors talks $200 million long six-year exchangeable notes to yield 1.5%-2%, up 20%-25%

By Abigail W. Adams

Portland, Me., Feb. 9 – Nabors Industries Ltd. plans to price $200 million of long six-year exchangeable notes after the market close on Thursday with price talk for a coupon of 1.5% to 2% and an initial exchange premium of 20% to 25%, according to a market source.

The notes will be sold via subsidiary Nabors Industries, Inc.

Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $30 million.

The notes are non-callable for 3.5 years and then are subject to a 130% hurdle.

There is takeover and dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to redeem the company’s outstanding 9% senior priority guaranteed notes due 2025 and for general corporate purposes.

Nabors is a Hamilton, Bermuda-based oil and gas drilling contractor.

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