HAMILTON, Bermuda, June 17,
2024 /PRNewswire/ -- Nabors Industries Ltd.
("Nabors") (NYSE: NBR) closed, on June 17,
2024, an amendment and restatement of its secured credit
facility. The new $475 million
facility is comprised of $350 million
for revolving credit and $125 million
for letters of credit. The facility matures on June 17, 2029. The maturity date can be brought
forward to 90 days before the maturity date of certain of
the Company's debt securities, if those debt
securities were not sufficiently paid down prior to such
date. The amended and
restated facility replaces the Company's prior
$350 million secured credit facility,
which would have matured on January 21, 2026.
Changes in the amended and restated credit facility from the
prior facility include:
- a $125-million letter of credit
facility, increased from $100 million
in the prior credit facility, with issued letters of credit not
affecting Nabors' capacity under the $350
million revolving facility; and
- A $200-million uncommitted
accordion feature that can be applied to increase the commitments
for Revolving Credit or Letters of Credit Facility, or both.
This compares to a $100 million
accordion for the prior facility.
The existing basket in the prior facility of up to $150 million for additional indebtedness in the
form of term loans and letter of credits, secured by liens, remains
unchanged. In addition, the grower basket for term loans of
up to $100 million also remains
unchanged.
Consistent with the prior credit facility, the amended and
restated credit facility requires Nabors to maintain an interest
coverage ratio of 2.75:1.00 and a minimum guarantor value of 90%.
The amended and restated credit facility is guaranteed by Nabors
and certain of its subsidiaries.
Initial borrowing margin under the new credit facility will be
approximately 2.75%. The borrowing rate will vary over time and may
be adjusted with changes to Nabors' credit ratings.
William Restrepo, Nabors' Chief
Financial Officer, commented, "Following our recent notes issue in
late 2023, we are improving our near-term liquidity by closing
on this amended credit facility. The amended facility matures five
years from now. The expansion of our credit facility will
provide us with more flexibility to address our working capital
needs and will support growth in our international markets,
where contracts often require bid or performance bonds,
without consuming capacity of the revolving credit
facility.
"This amendment to our credit facility improves our overall
liquidity profile. As we have done before, we plan to continue
addressing our debt maturities prudently and well in advance of
their expiration. As we progress through 2024, we expect our
operating results to strengthen, supporting our cash flow
targets."
Institutions participating in the credit facility are Citibank,
N.A., Wells Fargo Bank, N.A., Goldman Sachs Bank USA, HSBC
Bank USA, N.A. and Morgan Stanley
Senior Funding, Inc.
Further details regarding the credit facility are available in a
Current Report on Form 8-K filed with the Securities and Exchange
Commission.
About Nabors Industries
Nabors Industries is a leading
provider of advanced technology for the energy industry. With
presence in more than 20 countries, Nabors has established a global
network of people, technology and equipment to deploy solutions
that deliver safe, efficient and responsible energy production. By
leveraging its core competencies, particularly in drilling,
engineering, automation, data science and manufacturing, Nabors
aims to innovate the future of energy and enable the transition to
a lower-carbon world. Learn more about Nabors and its energy
technology leadership: www.nabors.com.
Investor Contacts:
For further information regarding
Nabors, please contact William C.
Conroy, CFA, Vice President of Corporate Development &
Investor Relations, +1 281-775-2423 or via e-mail
william.conroy@nabors.com, or Kara
Peak, Director of Corporate Development & Investor
Relations, +1 281-775-4954 or via email kara.peak@nabors.com.
View original
content:https://www.prnewswire.com/news-releases/nabors-announces-amendment-and-restatement-of-475-million-credit-facility-302174571.html
SOURCE Nabors Industries Ltd.