Noble Corporation plc NE has priced an offering of $1.1 billion aggregate principal amount of senior unsecured notes. The offering was made in three separate tranches, with $250 million of 4.000% senior notes due 2018, $450 million of 5.950% senior notes due 2025 and $400 million of 6.950% senior notes due 2045. The weighted average coupon of all three tranches is 5.87%.
Noble Corporation, a Cayman Islands exempted company and an indirect, wholly owned subsidiary of Noble, will fully and unconditionally guarantee the notes on a senior unsecured basis. The estimated net proceeds of approximately $1.085 billion are expected to be used to repay indebtedness outstanding under the company’s revolving credit facilities and a commercial paper program.
At the end of the fourth quarter of 2014, the company had a cash balance of $68.5 million and long-term debt of $4,869.0 million, with debt-to-capitalization ratio of 40% (compared with 37% in the preceding quarter).
Noble is a provider of diversified services for the oil and gas industry. The company performs contract drilling services. It also provides labor contract drilling, engineering and consulting, and project management services. The company offers its services principally in the United States, the Middle East, India, Mexico, the North Sea, Brazil, and West Africa.
At Dec 31, 2014, 81% of the company's available rig operating days were committed for 2015, including 80% floating rig days and 82% jackup rig days. For 2016, an estimated 52% of available rig operating days are committed, consisting of 58% and 46% of floating and jackup rig days, respectively. Overall total backlog at quarter end was approximately $10.1 billion versus $10.6 billion as of Sep 30, 2014.
Noble currently carries a Zacks Rank #3 (Hold). Better-ranked oil and gas stocks include Valero Energy Partners L.P. VLP, Global Partners LP GLP and Hallador Energy Company HNRG. All these carry a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment