Each one in plain English, with the numbers worked through for a shareholder.
22 Jan 2020material agreement● NeutralMajor
The January 2020 tender offers for Nabors Delaware's notes drew enough early responses that the company raised its total cap from $800M to about $955.6M. It accepted all tendered 5.50% 2023 notes ($407.7M), $379.7M of the 4.625% 2021 notes (about 89.5% of those tendered, prorated) and all tendered 5.10% 2023 notes ($165.5M), with payment expected 2020-01-22. No 5.00% 2020 notes were accepted, and late tenders will not be accepted. Holders of a majority of the 5.50% notes consented to strip most restrictive covenants from their indenture, effective once the notes are purchased. This resolves the open question on the January tender offers.
Nabors closed the sale of $600 million of 7.25% notes due 2026 and $400 million of 7.50% notes due 2028 on 2020-01-10, raising about $983.98 million net. It intends to use the money to fund tender offers of up to $800 million for its 5.50% 2023, 4.625% 2021, 5.10% 2023 and 5.00% 2020 notes, with the rest going to repay other debt and general purposes. This continues the refinancing of upcoming maturities, at higher interest rates than the notes being bought back.
On 2019-12-13 Nabors amended its October 2018 credit agreement: lender commitments fell to $981.6 million (US) and $32.0 million (Canada), and the net debt-to-capital covenant was replaced with a limit of 5.5 times EBITDA. The lien and debt baskets were each cut by $50 million, and Nabors gained the ability to repay up to $150 million of its notes due February 2025. Management said the changes give more room to absorb market shocks and refinance maturities through early 2023, while the lenders' commitments shrank. The release cites a net debt target of $2.9 billion at year-end.
On 2019-09-13 Nabors subsidiaries set up a $250 million facility to sell trade receivables, with Wells Fargo as administrative agent. The initial term is 23 months, and Nabors Industries Ltd. guarantees the subsidiaries' indemnification obligations, but not uncollectible receivables. This gives Nabors another funding source alongside its bank revolvers and bonds.
ICS Opportunities II LLC, Cognizant Holdings, Ltd, ICS Opportunities, Ltd, Integrated Assets, Ltd, Millennium International Management LP, Millennium Management LLC, Millennium Group Management LLC, Israel A. Englander disclosed a new substantial NABORS INDUSTRIES LTD shareholding (5.10% of votes).
On 2018-10-11 Nabors closed a new unsecured revolving credit facility of $1.267 billion, maturing 2023-10-11, or 2022-07-19 if any of the 5.5% notes due January 2023 are still outstanding. At the same time it cut the existing revolver, due 2020-07-14, to $666.25 million. The new facility adds a debt-to-drilling-assets covenant and subsidiary guarantees, and limits dividends to $110 million a year. It replaces part of the older revolver with a longer-dated one.
Morgan Stanley I.R.S. #, Morgan Stanley Smith Barney LLC I.R reported a NABORS INDUSTRIES LTD shareholding of 6,355,696 shares (1.70% of votes) in a periodic institutional filing.
Nabors Industries, Inc. gave notice that it will redeem $303,489,000 of its 9.25% senior notes due 2019 on 2018-07-06. After the redemption no notes of this series will remain outstanding. This pays off the 2019 notes early, which the filing describes as an option the company chose to exercise.
