Nabors greenshoe lifts 1.75% exchangeables to $250 million

By Mary-Katherine Stinson

Lexington, Ky., Feb. 15 – Underwriters for Nabors Industries, Inc.’s long six-year exchangeable notes due June 15, 2029 fully exercised their $25 million greenshoe on Feb. 10, resulting in a total deal size of $250 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced the notes after the market close on Feb. 9 at par at the midpoint of talk with a coupon of 1.75% and an initial conversion premium of 22.5%, as previously reported.

Price talk was for a coupon of 1.5% to 2% and an initial exchange premium of 20% to 25%.

Before being upsized, 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.

Settlement was Feb. 14.

Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. were bookrunners for the Rule 144A offering.

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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