Nabors Industries closed a secured $350 million revolving credit facility maturing on January 21, 2026. The new credit facility replaces the Company's 2018 Revolving Credit Facility, which would have matured on October 11, 2023. Institutions participating in the credit facility are Citibank, Goldman Sachs Bank USA, HSBC Bank USA, Morgan Stanley Senior Funding and Wells Fargo Bank.

The new credit facility has several features not included in the prior facility:

• An accordion feature to increase the credit facility capacity up to an additional $100 million
• A basket for additional indebtedness, including term loans and letters of credit, up to $150 million, secured by liens, which may include liens on the collateral securing the credit facility
• In the event of future increases in consolidated net tangible assets, a grower basket for term loans up to $100 million, secured by liens on assets outside the credit facility's collateral

The credit facility requires that the following senior notes be repaid at least 90 days before each note's applicable maturity date: Nabors Delaware's existing 5.1% and 5.5% senior notes, both due 2023, and 5.75% senior notes due 2025. In addition, to the extent that $143.6 million or more aggregate principal amount of the 0.75% senior exchangeable notes due 2024 remains outstanding 90 days prior to its maturity date, Nabors must defease or refinance said notes.

In lieu of the minimum liquidity requirement and the guarantor asset coverage ratio contained in Nabors' previous credit facility, the new credit facility requires Nabors to maintain an interest coverage ratio, which increases on a quarterly basis, and a minimum guarantor value.  In addition, the new credit facility includes a lower collateral coverage ratio.

Initial borrowing cost under the new credit facility will be approximately 3.1%. The rate will vary over time and may be adjusted with changes to Nabors' credit ratings.

The credit facility is guaranteed by Nabors and certain of its subsidiaries. The credit facility also includes a U.S. dollar-denominated standby letter of credit sublimit.