Nabors Industries Ltd. launched a $1 billion senior guaranteed notes offering comprised of $600 million of 7.25% senior guaranteed notes due 2026 and $400 million of 7.50% senior guaranteed notes due 2028, priced at 100% of par.
The notes will be guaranteed by the company's subsidiaries, which include Nabors Industries Inc., or NII, Nabors Drilling Holdings Inc., Nabors International Finance Inc., Nabors Lux Finance 1 SARL, Nabors Global Holdings Ltd. and Nabors Holdings Ltd., according to a Jan. 7 release from the oilfield service company.
The offering is expected to raise $986 million, after deducting commissions. The proceeds will be used to fund NII's offer to repurchase up to $800 million of its 5.50% senior notes due 2023, 4.625% senior notes due 2021, 5.10% senior notes due 2023 and 5.00% senior notes due 2020 through tender offers for the notes. The remaining proceeds are intended for general corporate purposes, which include debt repayment.
The offering is expected to close Jan. 10, subject to customary closing conditions.