Nabors redeems, exchanges all of two series of 0% exchangeables due 2023

By Jennifer Chiou

New York, July 1 - Nabors Industries Ltd. said that its wholly owned subsidiary, Nabors Industries Inc., redeemed and exchanged in full its $146,000 of zero-coupon senior exchangeable notes due 2023 and $699.85 million of series B zero-coupon senior exchangeable notes due 2023.

Holders of $699.36 million, or 99.91%, of the $700 million of notes due 2023 exercised their right to exchange their notes.

As a result, exchanging noteholders received cash equal to the principal amount of their notes, plus a total of 5.25 million Nabors shares with a value of $249.2 million, which represents the premium in the notional exchange that the company elected to satisfy with common shares.

The value of this premium for both issues equates to an effective annual interest rate of 6.28% over the five-year term for the $700 million of notes due 2023.

For more information, contact Dennis A. Smith (281 775-8038), director of corporate development.

The company said it also notified the trustee to proceed with the redemption of its remaining $82.8 million of zero-coupon senior convertible debentures due 2021.

Nabors is an onshore and offshore drilling company based in Hamilton, Bermuda. It announced plans for the redemption on May 27.

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