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Debt | 12 Months Ended
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Dec. 31, 2024
Debt |
Debt | Note 9 Debt ​ Debt consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31, |
​ |  | 2024 |  | 2023 |
​ | ​ | (In thousands) |
0.75% senior exchangeable notes due January 2024 | ​ | $ | — | ​ | $ | 155,529 | ​
5.75% senior notes due February 2025 | ​ | ​ | — | ​ |  | 474,092 | ​
7.25% senior guaranteed notes due January 2026 | ​ | ​ | — | ​ |  | 555,902 | ​
7.375% senior priority guaranteed notes due May 2027 | ​ | ​ | 700,000 | ​ |  | 700,000 | ​
7.50% senior guaranteed notes due January 2028 | ​ | ​ | 389,609 | ​ |  | 389,609 | ​
1.75% senior exchangeable notes due June 2029 | ​ |  | 250,000 | ​ | ​ | 250,000 | ​
9.125% senior priority guaranteed notes due January 2030 | ​ |  | 650,000 | ​ | ​ | 650,000 | ​
8.875% senior guaranteed notes due August 2031 | ​ |  | 550,000 | ​ | ​ | — | ​
​ | ​ | $ | 2,539,609 | ​ | $ | 3,175,132 | ​
Less: current portion | ​ |  | — | ​ |  | 629,621 | ​
Less: deferred financing costs | ​ | ​ | 34,392 | ​ | ​ | 33,992 | ​
Long-term debt | ​ | $ | 2,505,217 | ​ | $ | 2,511,519 | ​
​ As of December 31, 2024, the principal amount and maturities of our primary debt for each of the five years following 2024 and thereafter are as follows: ​
​ | ​ | ​ | ​ | ​
​ |  | Paid at Maturity |
​ | ​ | (In thousands) |
2027 | ​ | $ | 700,000 | (1)
2028 | ​ |  | 389,609 | (2)
2029 | ​ |  | 250,000 | (3)
Thereafter | ​ |  | 1,200,000 | (4)
​ | ​ | $ | 2,539,609 | ​
​ ​
(1) | Represents our 7.375% senior priority guaranteed notes due May 2027.
​
(2) | Represents our 7.50% senior guaranteed notes due January 2028.
​
(3) | Represents our 1.75% senior exchangeable notes due June 2029 and our 2024 Credit Agreement.
​
(4) | Represents our 9.125% senior priority guaranteed notes due January 2030 and our 8.875% senior guaranteed notes due August 2031.
​ During 2024, we fully redeemed the $474.1 million remaining balance of the 5.75% senior notes due February 2025 for approximately $487.0 million in cash, including principal, premium of $1.4 million and $11.5 million in accrued and unpaid interest. We also fully redeemed the $555.9 million remaining balance of the 7.25% senior guaranteed notes due January 2026 for approximately $568.3 million in cash, including principal, premium of $10.1 million and $2.4 million in accrued and unpaid interest. In connection with the redemptions, we recognized a $14.9 million loss for the year ended December 31, 2024, which is included in Other, net in our condensed consolidated statement of income (loss). In addition, the remaining balance of the 0.75% senior exchangeable notes due January 2024 were fully redeemed. ​ 8.875% Senior Guaranteed Notes due August 2031 ​ On July 22, 2024, Nabors issued $550.0 million in aggregate principal amount of 8.875% senior guaranteed notes, which are fully and unconditionally guaranteed by Nabors and certain of Nabors’ indirect wholly-owned subsidiaries. Interest on the notes is payable on February 15 and August 15 of each year. The notes have a maturity date of August 15, 2031. ​ 1.75% Senior Exchangeable Notes Due June 2029 ​ In February 2023, Nabors Delaware issued $250.0 million in aggregate principal amount of 1.75% senior exchangeable notes due 2029, which are fully and unconditionally guaranteed by Nabors. The notes bear interest at a rate of 1.75% per year payable semiannually on June 15 and December 15 of each year, beginning on December 15, 2023. As of December 31, 2024, there was $250.0 million in aggregate principal amount that remained outstanding. ​ The 1.75% exchangeable notes are exchangeable, only under certain conditions, at an exchange rate of 4.7056 common shares of Nabors per $1,000 principal amount of exchangeable notes (equivalent to an exchange price of approximately $212.51 per common share). Upon any exchange, Nabors will settle its exchange obligation in cash, common shares of Nabors, or a combination of cash and common shares, at our election. The 1.75% exchangeable notes are redeemable, in whole or in part, at our option at any time on or after June 15, 2026 only if the last reported sale price per common shares exceeds 130% of the exchange price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading days immediately before the date of the related redemption notice; and (2) the trading day immediately before we send such notice, at a cash redemption price equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest. If a “fundamental change” (as defined in the Indenture) occurs, subject to certain conditions, holders may require us to repurchase for cash any or all of their 1.75% exchangeable notes at a repurchase price equal to 100% of the principal amount of the 1.75% exchangeable notes to be repurchased, plus accrued and unpaid interest. Based on our assessment of the features of the 1.75% exchangeable notes, it was determined that there are features that need to be assessed for bifurcation as a derivative. As part of the assessment, the features were either not required to be bifurcated based on accounting guidance or would have no value if bifurcated. ​ Credit Agreement ​ On June 17, 2024, Nabors Delaware amended and restated its existing credit agreement (as amended and restated, the “2024 Credit Agreement”). Under the 2024 Credit Agreement, the lenders have committed to provide to Nabors Delaware an aggregate principal amount of revolving loans at any time outstanding not in excess of $350.0 million, and the issuing banks have committed to provide a standalone letter of credit tranche that permits Nabors Delaware to issue reimbursement obligations under letters of credit in an aggregate principal amount at any time outstanding not in excess of $125.0 million. Letters of credit issued do not affect revolving loan capacity and vice versa. The 2024 Credit Agreement contains a $200.0 million uncommitted accordion feature that can be applied to increase the commitments under either the revolving loans or the letter of credit tranche, or both. ​ The Company is required to maintain an interest coverage ratio (EBITDA/interest expense) of 2.75:1.00, and a minimum guarantor value, requiring the guarantors (other than the Company) and their subsidiaries to own at least 90% of the consolidated property, plant and equipment of the Company. The facility matures on the earlier of (a) June 17, 2029 and (b) to the extent 10% or more of the respective principal amount of any of the 7.375% Senior Priority Guaranteed Notes due May 2027 or 7.50% Senior Guaranteed Notes due January 2028 or 50% or more of the principal amount of the 1.75% Senior Exchangeable Notes due June 2029 remains outstanding on the date that is 90 days prior to the applicable maturity date for such indebtedness, then such 90th day. Additionally, the Company is subject to covenants, which are subject to certain exceptions and include, among others, (a) a covenant restricting our ability to incur liens (subject to the additional liens basket of up to $150.0 million), (b) a covenant restricting its ability to pay dividends or make other distributions with respect to its capital stock and to repurchase certain indebtedness and (c) a covenant restricting the ability of the Company’s subsidiaries to incur debt (subject to the grower debt basket of up to $100.0 million). The agreement also includes a collateral coverage requirement that the collateral rig fair value is to be no less than the collateral coverage threshold, as defined in the agreement. This requirement includes an independent appraisal report to be delivered every 6 months following the closing date. As of December 31, 2024, we had no borrowings and $51.6 million of letters of credit outstanding under our 2024 Credit Agreement. The weighted average interest rate on borrowings under the 2024 Credit Agreement at December 31, 2024 was 8.04%. In order to make any future borrowings under the 2024 Credit Agreement, 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 the date of this report, we were in compliance with all covenants under the 2024 Credit Agreement. We expect to remain in compliance with all covenants under the 2024 Credit Agreement during the twelve-month period following the date of this report based on our current operational and financial projections. However, we can make no assurance of continued compliance if our current projections or material underlying assumptions prove to be incorrect. If we fail to comply with the covenants, the revolving credit commitment could be terminated, and any outstanding borrowings under the facility could be declared immediately due and payable. ​ Letters of Credit ​ We had seven letter-of-credit facilities with various banks as of December 31, 2024. Availability and borrowings under our letter-of-credit facilities are as follows: ​
​ | ​ | ​ | ​
​ |  | December 31,
​ | ​ | 2024
​ | ​ | (In thousands)
Credit available | ​ | $ | 303,667
Less: Letters of credit outstanding, inclusive of financial and performance guarantees | ​ |  | 129,523
Remaining availability | ​ | $ | 174,144
​

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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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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