Noble's subsidiary, Noble Holding ("NHIL"), has priced an offering of $1.25 billion aggregate principal amount of senior notes in three separate tranches, with $350 million of 3.45% senior notes due 2015, $500 million of 4.90% senior notes due 2020, and $400 million of 6.20% senior notes due 2040. The weighted average coupon of all three tranches is 4.91%. Noble Corporation, a Cayman Islands company ("Noble-Cayman"), and a direct wholly-owned subsidiary of Noble, will fully and unconditionally guarantee the notes on a senior unsecured basis.
The estimated net proceeds of approximately $1.24 billion are expected to be used to finance a portion of the purchase price for the pending acquisition of privately-held FDR Holdings Limited ("Frontier"), which acquisition is expected to close by the end of July 2010 and is subject to customary closing conditions. If the pending Frontier acquisition is not consummated or the merger agreement with Frontier is terminated on or prior to 5:00 pm, New York City time, on September 30, 2010, NHIL will be required to redeem all of the notes at 101% of their aggregate principal amount, plus accrued and unpaid interest from the date of initial issuance to but excluding the date of redemption. Pending the application of funds from the offering, the net proceeds will be invested in U.S. government obligations, bank deposits or other secure, short-term investments.
Most Popular Articles