HAMILTON, Bermuda - Nabors Industries Ltd. (NYSE: NYSE:NBR), a global provider of advanced technology for the energy sector, has announced through its indirect wholly-owned subsidiary, Nabors Industries, Inc. (NII), the commencement of a $550 million offering of senior guaranteed notes due in 2031. The notes are to be fully and unconditionally guaranteed by Nabors and certain of its subsidiaries.
The senior unsecured obligations will rank equally with NII's current and future senior obligations, including the 7.50% senior guaranteed notes due in 2028. The guarantees from Nabors' subsidiaries will also rank pari passu with their existing and future senior obligations.
This offering aims to generate funds for Nabors to redeem its 7.25% senior guaranteed notes due in 2026, with any remaining proceeds to be allocated for general corporate purposes. These may include repaying other outstanding debts.
The information in this article is based on a press release statement from Nabors Industries Ltd.
In other recent news, Nabors Industries Ltd. has reported steady financial performance and resilience in the face of market challenges. The company announced its preliminary operating results for the second quarter, expecting to report operating revenue of approximately $735 million and an adjusted EBITDA of around $218 million. These figures are in line with expectations, with adjusted free cash flow performing better than anticipated.
Nabors also reported a robust start to 2024 with its total adjusted EBITDA surpassing expectations in the first quarter. The company showed significant rig deployments in Algeria and new contracts in Argentina and the Middle East, reflecting its international market strength. Despite a decline in the rig count in the Lower 48, Nabors' technology segment, NDS, saw revenue growth both domestically and internationally.
These recent developments indicate Nabors' strategic focus on international expansion and technological advancements.
InvestingPro Insights
In light of Nabors Industries Ltd.'s (NYSE: NBR) recent announcement regarding the offering of senior guaranteed notes, potential investors may find the following data and insights from InvestingPro particularly relevant. The company's market capitalization stands at a moderate $815.21 million, indicating its size within the industry and potential impact of the new notes offering on its financial structure.
Despite the company's efforts to manage its debt, InvestingPro Tips suggest caution. The Relative Strength Index (RSI) indicates that the stock is currently in overbought territory, which could imply a pullback in the near future. Additionally, analysts do not expect Nabors to be profitable this year, which could affect the company's ability to meet its financial obligations and impact the attractiveness of the new notes to investors.
However, there are positive signs as well. Nabors has experienced a significant return over the last week, with a 15.24% price total return, and even stronger performance over the last month, with a 38.29% return. This volatility in stock price movements could present opportunities for short-term traders.
For those considering a deeper analysis, InvestingPro offers additional insights and metrics, including the fact that Nabors' liquid assets exceed its short-term obligations, which could be a sign of financial stability in the immediate future. For access to all the available InvestingPro Tips, which could further inform investment decisions, visit https://www.investing.com/pro/NBR. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and discover the 9 additional tips listed on InvestingPro that could provide a more comprehensive understanding of Nabors' financial position.
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