Nabors Announces Amendment and Restatement of $475 Million Credit Facility

Core Viewpoint - Nabors Industries Ltd. has successfully amended and restated its secured credit facility, enhancing its liquidity and flexibility to support growth and working capital needs [1][5]. Group 1: Credit Facility Details - The new credit facility totals $475 million, consisting of $350 million for revolving credit and $125 million for letters of credit, maturing on June 17, 2029 [1]. - The amended facility includes a $125 million letter of credit facility, increased from $100 million in the prior facility, and a $200 million uncommitted accordion feature, up from $100 million previously [2]. - The existing basket for additional indebtedness remains unchanged at up to $150 million for term loans and letters of credit, as well as a grower basket for term loans of up to $100 million [3]. Group 2: Financial Requirements and Conditions - The amended credit facility requires Nabors to maintain an interest coverage ratio of 2.75:1.00 and a minimum guarantor value of 90% [4]. - The initial borrowing margin under the new facility is approximately 2.75%, with rates subject to change based on Nabors' credit ratings [4]. Group 3: Management Commentary - The Chief Financial Officer of Nabors stated that the amended credit facility improves near-term liquidity and provides flexibility for working capital needs, particularly in international markets [5]. - The company plans to address debt maturities prudently and expects operating results to strengthen throughout 2024, supporting cash flow targets [6]. Group 4: Company Overview - Nabors Industries is a leading provider of advanced technology for the energy industry, operating in over 20 countries and focusing on safe, efficient, and responsible energy production [8].