Noble Corporation PLC has announced the commencement of an offering of an additional $675 million in aggregate principal amount of its 8.000% senior notes due 2030. This offering is an expansion of the existing $600 million aggregate principal amount of 8.000% senior notes due 2030 issued in 2023, all of which remain outstanding.
The net proceeds from this offering are intended to fund the cash consideration in connection with Noble's pending merger with Diamond Offshore Drilling, Inc., as well as for general corporate purposes.
The new notes will be issued as additional notes under the existing indenture and will have the same terms as the existing notes, with the exception of the issue date, issue price, first date on which interest will be paid, and the first date from which interest will accrue. These new notes will be treated as a single series with the existing notes under the indenture.
The new notes are being offered in the United States only to qualified institutional buyers under Rule 144A under the Securities Act, and to persons outside the United States in compliance with Regulation S.
It's important to note that the new notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the securities act and applicable state securities laws.
This announcement comes as Noble Corporation PLC seeks to bolster its financial position and liquidity in preparation for its upcoming merger with Diamond Offshore Drilling, Inc. The market has reacted to these announcements by moving the company's shares 1.8% to a price of $40.55. For more information, read the company's full 8-K submission here.
