Nabors Receives Commitments for a $700 Million Unsecured Revolving Credit Facility

Nabors Industries Ltd. NBR today announced the receipt of commitment letters with respect to an unsecured revolving credit facility with an aggregate principal amount of up to $700 million. The term of the credit facility is expected to be four years. The facility is also expected to include an accordion feature that would allow the Company to add lenders and increase the aggregate principal amount up to $850 million. Interest margins and undrawn fees are expected to be based upon the Company's senior unsecured credit ratings. The facility is expected to bear interest, at the Company's option, at (a) one-, two-, three- or six-months LIBOR plus the applicable margin, or (b) the higher of the prime commercial rate of UBS AG, the Federal Funds Rate plus 1/2 of 1% or one-month LIBOR, plus the applicable margin. Based upon the Company's current credit ratings of BBB+ and Baa1 the interest margin and undrawn fees under option (a) would be 150bps and 30bps, respectively, and 50bps and 30bps under option (b). The borrower under the credit facility will be Nabors Industries, Inc., a Delaware corporation and wholly owned subsidiary of the Company. The Company will fully and unconditionally guarantee the obligations of the borrower under the credit facility.