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EXHIBIT 99.1
NABORS PRIVATE PLACEMENT OF 20-YR. ZERO CONVERT TO YIELD 2.5% AND 43% PREMIUM
HOUSTON TEXAS, JUNE 15, 2000, Nabors Industries Inc. today announced that they
have agreed on the terms of a private placement of 20-year Zero Coupon Senior
Convertible Debentures. The issue price was $608.41 for each $ 1,000.00 in face
value, which will provide gross proceeds to Nabors of approximately $502 million
and potentially up to another $76 million if the over-allotment is exercised.
The issue price represents a yield-to-maturity of 2.5%. The conversion provision
is at a fixed ratio of 10.738 shares per $1,000.00 face value, which equates to
an initial conversion price of $56.66 per common share of Nabors, which will
appreciate at the rate of accrual of the original issue discount. This
represents a conversion premium of 43% to yesterday's $39.625 effective closing
price of Nabors' common stock. The debentures can be put to the company on the
third, eighth and thirteenth anniversaries of the issue date at the issue price
plus the accrued original issue discount and can be paid in cash or stock at
Nabors' option. The bonds are callable by Nabors any time after the third
anniversary of the issue at the issue price plus accrued original issue
discount. This transaction is expected to close on June 20, 2000 subject to
satisfaction of customary closing conditions.
Eugene M. Isenberg Nabors' Chairman and Chief Executive Officer commented on the
issuance of the notes. "We decided to capitalize on the strong demand in the
convertibles market which provides an opportunity to leverage our financial
position with relatively inexpensive capital at attractive terms while
maintaining conservative financial ratios and a negative cost of carry. We have
found it advantageous to borrow when debt market conditions are favorable in
anticipation of future opportunities, even though we have no pressing need for
the funds."
These securities have not been registered under the Securities Act of 1933 and
may not be offered or sold in the United States absent registration or an
applicable exemption from registration.
Statements in this release that contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 include, but are
not limited to, statements regarding the timing of and conditions to closing and
the amount and use of proceeds. Such forward-looking statements are subject to
certain risks and uncertainties, as disclosed by Nabors from time to time in its
filings with the Securities and Exchange Commission. As a result of these
factors, Nabors' actual results may differ materially from those indicated or
implied by such forward-looking statements.
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Nabors' stock is listed on the American Stock Exchange (NBR). For further
information, please contact Dennis A. Smith at Nabors at (281) 874-0035. To
request Investor Materials, call (281) 775-8000 - extension 6363.
