Nabors: $700 Million Revolving Credit Facility
On Sept 2nd Bermuda-headquartered Nabors Industries Ltd. announced the receipt of commitment letters with respect to an unsecured revolving credit facility with an aggregate principal amount of up to $700 million. The term of the credit facility is expected to be four years. The facility is also expected to include an accordion feature that would allow the Company to add lenders and increase the aggregate principal amount up to $850 million.
Interest margins and undrawn fees are expected to be based upon the Company’s senior unsecured credit ratings. The facility is expected to bear interest, at the Company’s option, at one-, two-, three- or six-months LIBOR plus the applicable margin, or the higher of the prime commercial rate of UBS AG, the Federal Funds Rate plus 1/2 of 1% or one-month LIBOR, plus the applicable margin.
UBS Securities LLC, Citibank, N.A., Deutsche Bank AG New York Branch, and Mizuho Corporate Bank (USA) have committed equal sums and are expected to be the Joint Lead Arrangers and Joint Bookrunners, while UBS AG, Stamford Branch is expected to be the Administrative Agent and Issuing Bank. The remaining lenders that have signed commitment letters are, in order of commitment size: Morgan Stanley Bank, N.A. and Bank of America, N.A., followed by PNC Bank, National Association, The Bank of Nova Scotia and HSBC Bank USA, N.A.
Gene Isenberg, Nabors’ Chairman and CEO, commented, “I am very pleased with the strong participation in our line by nine leading financial institutions. The attractive terms and better-than-expected subscription speak well of our standing in the financial markets.”
