By Abigail W. Adams
Portland, Me., Feb. 10 – Nabors Industries Ltd. priced an upsized $225 million of long six-year exchangeable notes (//CCC) after the market close on Thursday at par at the midpoint of talk with a coupon of 1.75% and an initial conversion premium of 22.5%, according to a market source and a company press release.
Price talk was for a coupon of 1.5% to 2% and an initial exchange premium of 20% to 25%.
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 downsized greenshoe of $25 million.
The initial size of the offering was $200 million with 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.
| Issuer: | Nabors Industries, Inc.
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| Amount: | $225 million
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| Greenshoe: | $25 million
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| Issue: | Exchangeable senior notes
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| Maturity: | June 15, 2029
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| Bookrunners: | Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc.
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| Coupon: | 1.75%
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| Price: | Par
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| Yield: | 1.75%
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| Exchange premium: | 22.5%
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| Exchange price: | $212.51
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| Exchange rate: | 4.7056
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| Call options: | Non-callable for 3.5 years and then are subject to a 130% hurdle
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| Put options: | Upon a fundamental change
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| Pricing date: | Feb. 9
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| Settlement date: | Feb. 14
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| Rating: | Fitch: CCC
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| Distribution: | Rule 144A
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| Talk: | Coupon of 1.5% to 2% and initial exchange premium of 20% to 25%
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| Stock symbol: | NYSE: NBR
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| Stock price: | $173.48 at market close Feb. 10
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| Market capitalization: | $1.63 billion
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