Milbank LLP counseled leading global oil, natural gas and geothermal drilling contractor Nabors Industries Ltd. (“Nabors”) in connection with its concurrent share offerings with gross proceeds totaling approximately $558 million. Nabors issued 35 million common shares at $7.75 per share and 5.75 million mandatory convertible preferred shares at $50 per share on May 14, 2018.
Each mandatory convertible preferred share will convert automatically into between 5.3763 and 6.4516 of Nabors’ common shares on May 1, 2021, unless converted earlier. Dividends on the mandatory convertible preferred shares are payable on a cumulative basis when, as and if declared by Nabors’ board of directors, at a 6.00% annual rate on the liquidation preference of $50.00 per share.
Nabors plans to use the offerings’ net proceeds to repay borrowings outstanding under its revolving credit facility, which it may re-borrow for the repayment of other indebtedness, and for general corporate purposes.
The Milbank team included New York Corporate partner Charles Conroy; New York Capital Markets partners Jim Ball and Brett Nadritch with associates Elizabeth McNichol and Lindsey Kell; and New York Tax partner Andrew Walker with associate Archan Hazra.
