EXHIBIT 99.1
NABORS ANNOUNCES REDEMPTION OF NOTES
HAMILTON, Bermuda – July 1, 2008 – Nabors Industries Ltd. (NYSE: NBR) (“Nabors”) announced today
that its wholly-owned subsidiary, Nabors Industries, Inc. (“NII”), has either redeemed or exchanged
the full $146,000 aggregate outstanding principal amount of its Zero Coupon Senior Exchangeable
Notes due 2023 (the “Original 2023 Notes”) and the full $699,854,000 outstanding aggregate
principal amount of its Series B Zero Coupon Senior Exchangeable Notes due 2023 (together with the
Original 2023 Notes, the “2023 Notes”). NII has also notified the trustee to proceed with
redemption of the remaining $82.8 million outstanding aggregate principal amount at maturity of its
Zero Coupon Senior Convertible Debentures due 2021 (the “2021 Notes”), CUSIP No. 629568AF3, that
were not repurchased by NII in accordance with the holders’ put option on the fifth anniversary of
the 2021 Notes in February 2006.
For the 2023 Notes, holders representing an aggregate principal amount of $699,357,000, or 99.91%
of the $700 million in 2023 Notes, exercised their right to exchange their 2023 Notes into the
notional value of an amount of common stock of Nabors. Accordingly, such holders will be
receiving, or have already received, cash representing the aggregate principal amount of their 2023
Notes plus a total of approximately 5.25 million shares of
common stock of Nabors with a fair value of approximately
$249.2 million, representing the premium in the
notional exchange which NII elected to satisfy with common shares of Nabors in accordance with the
applicable indenture. The premium due was computed in accordance with the indentures utilizing the
five or ten day volume weighted average price as applicable of common stock of Nabors beginning on
the second trading day following receipt of the holder’s exchange notice.
The
aggregate value of this premium for both issues equates to
an effective annual interest rate of 6.28% over the five year term
for the $700 million in principal amount of the 2023 Notes. To
mitigate the dilutive impact of the share delivery to the Note
holders, Nabors repurchased through an affiliate approximately 3.5 million shares of its common stock
in the open market during May and early June 2008. The average price
of these repurchases was approximately $41.68 per share.
The Nabors companies own and actively market a fleet of approximately 537 land drilling and
approximately 747 land workover and well-servicing rigs in North America. Nabors’ actively marketed
offshore fleet consists of approximately 36 platform rigs, 12 jack-up units and 4 barge rigs in the
United States and multiple international markets. In addition, Nabors manufactures top drives and
drilling instrumentation systems and provides comprehensive oilfield hauling, engineering, civil
construction, logistics and facilities maintenance, and project management services. Nabors also
holds interest in various oil and gas properties, both in North America and internationally.
Nabors participates in most of the significant oil, gas and geothermal markets in the world.
The information above includes forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. 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.
For further information, please contact Dennis A. Smith, Director of Corporate Development of
Nabors Corporate Services, Inc. at 281-775-8038. To request Investor Materials, call our corporate
headquarters in Hamilton, Bermuda at 441-292-1510 or via email at mark.andrews@nabors.com.