Nabors Establishes Credit Facility
Nabors announced that its wholly owned subsidiary, Nabors Industries, established the previously announced unsecured revolving credit facility in an aggregate principal amount of $700 million, with an accordion feature that permits additional commitments of up to $150 million. The facility is fully and unconditionally guaranteed by Nabors Industries and matures in four years. The facility may be used to partially fund the previously announced Superior Well Services Inc. acquisition and for general corporate purposes.
The lenders participating in the facility are UBS Loan Finance LLC, Citibank, N.A., Deutsche Bank AG New York Branch, Mizuho Corporate Bank (USA), Morgan Stanley Bank, N.A., Bank of America, NA, PNC Bank, National Association, The Bank of Nova Scotia and HSBC Bank USA, N.A. Borrowings under the facility will bear interest, at Nabors Industries, Inc.'s option, at either * the "Base Rate" defined below, plus the applicable interest margin, calculated on the basis of the actual number of days elapsed in a year of 365 days and payable quarterly in arrears, or (y) interest periods of one, two, three or six months at an annual rate equal to LIBOR for the corresponding deposits of U.S. dollars, plus the applicable interest margin. The "Base Rate" is defined, for any day, as a fluctuating rate per annum equal to the highest of (i) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1%, (ii) the prime commercial lending rate of UBS AG, as established from time to time at its Stamford Branch and (iii) LIBOR for an interest period of one month beginning on such day plus 1%.