NABORS INDUSTRIES LTD (NBR): M&A transaction — Nabors sells Quail Tools to Superior Energy for $600M; net debt to drop >25%

NABORS INDUSTRIES LTD

Consideration: $375M cash plus $250M seller note bearing interest at 7.5%-10%; transaction closed Aug 20.
Net debt to decline by $625M (from $2.3B) after proceeds, delivering >$50M annual interest savings.
Quail generated est. 2025 adjusted EBITDA of ~$150M; retained Parker businesses expected >$55M run-rate EBITDA.
Cash taxes on sale approx. $5M after NOL utilization; Preferred Supplier Agreement with Superior included.
Parker acquisition net effect: implied share value ~$130 per issued share plus retained EBITDA.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

NABORS INDUSTRIES LTD completed a disposition involving Covey Holdings, LLC for $600.0 million plus adjustments for net working capital (closed 2025-08-20).

Action: disposition
Counterparty: Covey Holdings, LLC
Consideration: $600.0 million plus adjustments for net working capital
Closing: 2025-08-20

Exact text from the filing

equity interests in Quail Tools, LLC (“Quail”) were sold by Sellers to Buyer on the Sale Date (the “Sale”). The net consideration paid by Buyer in connection with the Sale was $600.0 million plus adjustments for net working capital. Pursuant to the terms of the Agreement, the consideration consisted of (a) $375.0 million in cash which was paid by Buyer on the Sale

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Source: SEC EDGAR

accession 0001104659-25-081917

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