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Debt | 6 Months Ended
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Jun. 30, 2020
Debt |
Debt | Note 6 Debt ​ Debt consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31, | ​
​ |  | 2020 |  | 2019 |
​ | ​ | (In thousands) |
5.00% senior notes due September 2020 (1) | ​ | $ | 139,142 | ​ | $ | 282,046 | ​
4.625% senior notes due September 2021 | ​ |  | 155,044 | ​ |  | 634,588 | ​
5.50% senior notes due January 2023 | ​ |  | 36,959 | ​ |  | 501,003 | ​
5.10% senior notes due September 2023 | ​ |  | 155,738 | ​ |  | 336,810 | ​
0.75% senior exchangeable notes due January 2024 | ​ |  | 484,035 | ​ |  | 472,603 | ​
5.75% senior notes due February 2025 | ​ | ​ | 775,186 | ​ |  | 781,502 | ​
7.25% senior notes due January 2026 | ​ | ​ | 600,000 | ​ |  | — | ​
7.50% senior notes due January 2028 | ​ | ​ | 400,000 | ​ |  | — | ​
2012 Revolving credit facility (1) | ​ |  | — | ​ | ​ | 355,000 | ​
2018 Revolving credit facility | ​ |  | 560,000 | ​ | ​ | — | ​
​ | ​ | ​ | 3,306,104 | ​ | ​ | 3,363,552 | ​
Less: current portion | ​ |  | — | ​ |  | — | ​
Less: deferred financing costs | ​ | ​ | 30,001 | ​ | ​ | 30,332 | ​
​ | ​ | $ | 3,276,103 | ​ | $ | 3,333,220 | ​
​
(1) | The 5.00% senior notes due September 2020 and 2012 Revolving Credit Facility have been classified as long-term because we have the ability and intent to repay these obligations utilizing our revolving credit facility (see 2018 Revolving Credit Facility below).
​ During the six months ended June 30, 2020, we repurchased $1.3 billion aggregate principal amount outstanding of our senior unsecured notes for approximately $1.2 billion in cash, including principal, and $12.3 million in accrued and unpaid interest. Approximately $952.9 million of notes were purchased in the tender offers and consent solicitations described below and the remainder were purchased in the open market. In connection with these repurchases, we recognized a net gain of approximately $51.7 million for the six months ended June 30, 2020 and is included in other, net in our condensed consolidated statement of income (loss). ​ Subsequent to June 30, 2020 through the date of this report, we repurchased $15.8 million aggregate principal amount outstanding of various series of our senior unsecured notes for approximately $9.4 million in cash, reflecting principal, accrued and unpaid interest. ​ 7.25% and 7.50% Senior Notes Due January 2026 and 2028 ​ In January 2020, Nabors completed a private placement of $600.0 million aggregate principal amount of senior guaranteed notes due 2026 (the “2026 Notes”) and $400.0 million aggregate principal amount of senior guaranteed notes due 2028 (the “2028 Notes” and, together with the 2026 Notes, the “Notes”). The 2026 and 2028 Notes bear interest at an annual rate of 7.25% and 7.50%, respectively. The Notes are fully and unconditionally guaranteed by certain of Nabors’ indirect wholly-owned subsidiaries. ​ The proceeds from this offering were primarily used to repurchase $952.9 million aggregate principal amount of certain of Nabors Delaware’s senior notes that were tendered pursuant to an offer to purchase and consent solicitation. The aggregate principal amount repurchased included approximately $407.7 million of our 5.50% senior notes due 2023 (the “5.50% Notes”), $379.7 million of our 4.625% senior notes due 2021 (the “4.625% Notes”) and $165.5 million of our 5.10% senior notes due 2023 (the “5.10% Notes”). ​ 2018 Revolving Credit Facility ​ On December 13, 2019, Nabors Delaware and Nabors Drilling Canada Limited (“Nabors Canada” and together with Nabors Delaware, the “Borrowers”) entered into Amendment No. 2 (the “Second Amendment”) to the existing credit agreement dated October 11, 2018 (as amended, including such amendment, the “2018 Revolving Credit Facility”) by and among the Borrowers, the Guarantors identified therein, HSBC Bank Canada, as the Canadian lender (the “Canadian Lender”) the issuing banks and other lenders party thereto (the “US Lenders” and, together with the Canadian Lender, the “Lenders”) and Citibank, N.A., as administrative agent solely for the U.S. Lenders. Amendment No. 3 to the 2018 Revolving Credit Facility was entered into on March 3, 2020, in order to permit letters of credit from the Canadian Lender on the portion of the facility dedicated to Canadian borrowings. The 2018 Revolving Credit Facility has a borrowing capacity of $1.0136 billion and is fully and unconditionally guaranteed by Nabors and certain of its wholly owned subsidiaries. The 2018 Revolving Credit Facility matures at the earlier of (a) October 11, 2023 and (b) July 19, 2022, if any of Nabors Delaware’s existing 5.50% senior notes due January 2023 remain outstanding as of such date. Certain lenders have committed to provide Nabors Delaware an aggregate principal amount of $981.6 million under the 2018 Revolving Credit Facility, which may be drawn in U.S. dollars, and the Canadian Lender has committed to provide Nabors Canada an aggregate principal amount of $32.0 million in U.S. dollar equivalent, which can be drawn upon in either U.S. or Canadian dollars. The 2018 Revolving Credit Facility contains certain affirmative and negative covenants, including a financial covenant requiring Nabors to maintain net funded debt to EBITDA (as defined in the Second Amendment) at no greater than 5.5 times EBITDA. Additionally, during any period in which Nabors Delaware fails to maintain an investment grade rating from at least two ratings agencies, the guarantors under the facility and their respective subsidiaries will be required to maintain an asset to debt coverage ratio (as defined in the 2018 Revolving Credit Facility) of at least 2.50:1. As of June 30, 2020, we had $560 million outstanding under our 2018 Revolving Credit Facility. The weighted average interest rate on borrowings at June 30, 2020 was 2.94%. In order to make any future borrowings under the 2018 Revolving Credit Facility, Nabors and certain of its wholly owned subsidiaries are subject to compliance with the conditions and covenants contained therein, including compliance with applicable financial ratios. ​ As of June 30, 2020, we were in compliance with all covenants under the 2018 Revolving Credit Facility. See Note 2—Summary of Significant Accounting Policies for additional information regarding future covenant compliance. ​ 2012 Revolving Credit Facility ​ In connection with entering into the 2018 Revolving Credit Facility, Nabors Delaware entered into Amendment No. 3 to its credit agreement (as amended, including such amendment, the “2012 Revolving Credit Facility”). The 2012 Revolving Credit Facility had a capacity of $666.25 million. We have repaid all outstanding amounts and have terminated the facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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