Nabors Signs Agreement to Sell Peak Oilfield Service Company LLC
HOUSTON, Sept. 30, 2013
HOUSTON, Sept. 30, 2013 /PRNewswire/ --Nabors Industries Ltd. (NYSE: NBR)
announced today that Bristol Bay Native Corporation (BBNC) has signed a
definitive agreement with Nabors Alaska Services Corp. to acquire a 100
percent ownership interest in Peak Oilfield Service Company LLC (Peak). The
acquisition is subject to customary closing conditions and is expected to
close during the fourth quarter of 2013.
Due to its unique and diverse capabilities, Peak is a leading Alaska energy
support services company serving customers located primarily within the Alaska
North Slope, Cook Inlet, Valdez and North Dakota regions.
"For the past 25 years, Peak has provided safe and cost-effective
construction, maintenance, industrial cleaning, power generation and
transportation services to energy companies in Alaska and the northern United
States. As a result of its excellent reputation with customers, Peak has
strong potential growth opportunities as market conditions continue to improve
and the industry benefits from recent tax legislation changes in Alaska," said
Nabors Chairman, President and CEO Tony Petrello."We believe transferring
ownership to BBNC, a very successful and diversified Alaska Native
Corporation, will further strengthen Peak's long-term growth and future
Petrello added, "This divestiture is consistent with our objectives to
streamline our businesses and extract value from core operations while
enhancing our financial flexibility. Proceeds from this transaction and other
third quarter asset sales will more than cover the approximate $207 million
premium paid to refinance $785 million of higher-cost debt through our recent
tender offer which reduced annual interest expense by over $40 million."
Simmons & Company International is acting as financial advisor to Nabors in
the sale of Peak to BBNC.
About Bristol Bay Native Corporation
BBNC is a diversified Alaska Native Corporation with subsidiaries currently
operating in the oilfield and industrial services, construction, government
services, petroleum distribution and tourism industries. BBNC was established
pursuant to the Alaska Native Claims Settlement Act of 1971. BBNC works to
ensure the continuation of life and culture of its 9,400 shareholders - the
Eskimo, Indian and Aleut natives of southwest Alaska's Bristol Bay region.
About Nabors Industries
Nabors owns and operates the world's largest land-based drilling rig fleet and
has one of the largest completion services and workover and well servicing rig
fleets in North America. Our company is a leading provider of offshore
platform workover and drilling rigs in the U.S. and multiple international
markets. Nabors provides innovative drilling technology and equipment,
directional drilling and comprehensive oilfield services in most of the
significant oil and gas markets in the world.
Denny Smith, Nabors, +1 281 775 8038
SOURCE Nabors Industries Ltd.
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