HAMILTON, Bermuda, Dec. 16, 2019 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today
announced the amendment of its unsecured revolving credit facility,
which expires on October 11, 2023
(the "2018 Credit Facility"). The Company's $667 million revolving credit facility expiring
on July 14, 2020, remains
unchanged.
Changes to the 2018 Credit Facility include the following:
- Replaced the covenant to maintain a net debt to capitalization
ratio at less than 0.60 with a covenant to maintain net debt at no
greater than 5.5 times EBITDA (as defined in the 2018 Credit
Facility)
- Asset coverage ratio remains unchanged, but only captures
commitments under the 2018 Credit Facility plus debt incurred under
its $100 million general debt
basket
- Reduced aggregate lender commitments under the 2018 Credit
Facility by twenty percent to $1,013.6
million
There was no change to the interest rate on the 2018 Credit
Facility. Upon completing the amendment, participating banks
received an amendment fee equal to 0.1 percent of the reduced
commitments
William Restrepo, Nabors' Chief
Financial Officer, commented, "Our 2018 Credit Facility is an
important component of our financing structure, as it helps us fund
our working capital cycles, while providing us with the ability to
cost effectively time the refinancing of our debt. The covenant
modifications in our credit facility provide Nabors with additional
runway to absorb unforeseen market events, as well as giving us
increased flexibility in refinancing our upcoming maturities
through early 2023. We appreciate the support and trust of our
relationship banks in understanding our objectives and rapidly
moving through the amendment process."
Anthony G. Petrello, Nabors'
Chairman, President, and Chief Executive Officer, stated, "I
am pleased with the amendment to our credit facility, as it
bolsters our liquidity position and enhances our ability to execute
on future refinancing transactions. This amendment is one more step
on the road to a strengthened capital structure, as we continue to
reduce exposure, improve performance, generate cash flow and reduce
debt. During this quarter, we have continued to reduce our net debt
in line with our previously announced target. As stated earlier, we
expect strong cash generation in the fourth quarter and we confirm
our net debt target of $2.9 billion
at the end of the year."
Further details regarding the amended credit facility are
available in a Current Report on Form 8-K filed with the Securities
and Exchange Commission.
About Nabors
Nabors, (NYSE: NBR) owns and operates one of the world's largest
land-based drilling rig fleets and provides offshore platform rigs
in the United States and numerous
international markets. Nabors also provides directional drilling
services, performance tools, and innovative technologies for its
own rig fleet and those of third parties. Leveraging our advanced
drilling automation capabilities, Nabors highly skilled workforce
continues to set new standards for operational excellence and
transform our industry.
Forward-looking Statements
The information included in this press release includes
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. Such
forward-looking statements are subject to a number of risks and
uncertainties, as disclosed by Nabors from time to time in its
filings with the Securities and Exchange Commission. As a result of
these factors, Nabors' actual results may differ materially from
those indicated or implied by such forward-looking
statements. The forward-looking statements contained in this
press release reflect management's estimates and beliefs as of the
date of this press release. Nabors does not undertake to
update these forward-looking statements.
Non-GAAP Disclaimer
This press release references "net
debt," which is a "non-GAAP" financial measure. Net debt is
calculated as total debt minus the sum of cash and cash
equivalents. This non-GAAP measure has limitations and therefore
should not be used in isolation or as a substitute for the amounts
reported in accordance with GAAP.
Media Contact: Dennis A.
Smith, Senior Vice President of Corporate Development &
Investor Relations, +1 281-775-8038 or William C. Conroy, Senior Director of Corporate
Development & Investor Relations, +1 281-775-2423.
To request investor materials, contact Nabors' corporate
headquarters in Hamilton, Bermuda
at +441-292-1510 or via e-mail mark.andrews@nabors.com
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SOURCE Nabors Industries Ltd.