By Ronda Fears
Nashville, June 3 - Nabors Industries Ltd. sold $700 million of 20-year convertible senior notes at par to yield 0% with a 57% initial conversion premium in the overnight Rule 144A market via lead manager Citigroup.
Nabors plans to use a portion of proceeds to redeem on June 20 the remaining $755 million outstanding principal amount of its 0% convertible senior debentures due 2020. The redemption price will be 65.55 per note, to be paid in cash for a total outlay of $494.9 million.
With the remaining proceeds, Nabors plans to redeem its 6.8% senior notes due April 2004, which have a remaining principal amount of $295.2 million.
Terms of the deal are:
Issuer: Nabors Industries Ltd.
| Issue: | Convertible senior notes
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| Lead manager: | Citigroup
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| Amount | $700 million
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| Greenshoe: | $140 million
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| Maturity: | June 15, 2023
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| Coupon: | 0%
|
| Price: | Par
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| Yield: | 0%
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| Conversion premium: | 57%
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| Conversion price: | $70.10
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| Conversion ratio: | 14.265
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| Call: | Non-callable for 5 years
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| Put: | In years 5, 10 and 15
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| Contingent conversion: | 120%
|
| Contingent payment: | 120%
|
| Ratings: | Moody's: A3
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| S&P: A-
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| Settlement: | June 10
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