Note 11 Debt

Debt consisted of the following:


	As of December 31,
	2016		2015
	(In thousands)
2.35% senior notes due September 2016 (1)	$	—	$	347,955
6.15% senior notes due February 2018		827,539		921,162
9.25% senior notes due January 2019		303,489		339,607
5.00% senior notes due September 2020		669,540		683,839
4.625% senior notes due September 2021		694,868		698,628
5.50% senior notes due January 2023		600,000		—
5.10% senior notes due September 2023		346,448		349,021
Term loan facility		162,500		325,000
Revolving credit facility		—		—
Commercial paper		—		8,000
Other		297		6,508
		3,604,681		3,679,720
Less: current portion		297		6,508
Less: deferred financing costs		26,049		18,012
	$	3,578,335	$	3,655,200

(1)

The 2.35% senior notes were repaid in September 2016, primarily utilizing borrowings under our revolving credit facility, as well as cash on hand.

As of December 31, 2016, the maturities of our primary debt for each of the five years after 2016 and thereafter are as follows:


	Paid at Maturity
	(In thousands)
2017	$	—
2018		828,759	(1)
2019		303,489	(2)
2020		833,175	(3)
2021		696,000	(4)
Thereafter		947,300	(5)
	$	3,608,723

(1)

Represents our 6.15% senior notes due February 2018.

(2)

Represents our 9.25% senior notes due January 2019.

(3)

Represents our 5.0% senior notes due September 2020 and borrowings outstanding under the term loan due September 2020. In January 2017, we issued $575 million in exchangeable notes. The net proceeds from this offering were used to prepay the remaining $162.5 million outstanding under our term loan facility. See Note 23—Subsequent Events.

(4)

Represents our 4.625% senior notes due September 2021.

(5)

Represents our 5.50% senior notes due January 2023 and 5.10% senior notes due September 2023.

Nabors Delaware’s various fixed rate debt securities comprised of our 6.15%, 9.25%, 5.0%, 4.625% and 5.10%, senior unsecured notes are fully and unconditionally guaranteed by us. The notes rank equal in right of payment to all of Nabors Delaware’s existing and future senior unsubordinated debt. The notes rank senior in right of payment to all of our existing and future senior subordinated and subordinated debt. Our guarantee of the notes is unsecured and ranks equal in right of payment to all of our unsecured and unsubordinated indebtedness from time to time outstanding. The notes are subject to redemption by Nabors Delaware, in whole or in part, at any time at a redemption price equal to the greater of (i) 100% of the principal amount of the notes then outstanding to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest, determined in the manner set forth in the applicable indenture. In the event of a change in control triggering event, as defined in the indenture, the holders of notes may require Nabors Delaware to purchase all or any part of each note in cash equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the date of purchase, except to the extent Nabors Delaware has exercised its right to redeem the notes.

During 2016, 2015 and 2014, we repurchased $152.7 million, $27.5 million, and $40.6 million aggregate principal amount of our senior unsecured notes for approximately $157.5 million, $27.5 million and $46.8 million, respectively, in cash, reflecting principal, accrued and unpaid interest.

5.50% Senior Notes Due January 2023

In December 2016, Nabors Delaware issued $600 million aggregate principal amount of its 5.50% senior notes due 2023, which are fully and unconditionally guaranteed by us. The notes are subject to registration rights. The notes pay interest semi-annually on January 15 and July 15, beginning on July 15, 2017, and will mature on January 15, 2023.

The notes rank equal in right of payment to all of Nabors Delaware’s existing and future unsubordinated indebtedness, and senior in right of payment to all of Nabors Delaware’s existing and future senior subordinated and subordinated indebtedness. Our guarantee of the notes is unsecured and an unsubordinated obligation and ranks equal in right of payments to all of our unsecured and unsubordinated indebtedness from time to time outstanding. In the event of a change of control triggering event, as defined in the indenture, the holders of the notes may require Nabors Delaware to purchase all or a portion of the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any. The notes are redeemable in whole or in part at any time at the option of Nabors Delaware at a redemption price, plus accrued and unpaid interest, as specified in the indenture. Nabors Delaware used a portion of the proceeds to prepay the $162.5 million portion due in 2018 under the term loan facility and all amounts outstanding at the time under the revolving credit facility, which matures in 2020. Any remaining proceeds not used for such purposes were allocated for general corporate purposes, including to repay amounts outstanding under the commercial paper program and to repurchase or repay other indebtedness.

Commercial Paper Program

In April 2013, Nabors Delaware established a commercial paper program. This program, as amended, currently allows for the issuance from time to time of up to an aggregate amount of $2.25 billion in commercial paper with a maturity of no more than 397 days. Our commercial paper borrowings are classified as long‑term debt because the borrowings are fully supported by availability under our revolving credit facility, which matures as currently structured in July 2020, more than one year from now. The weighted average interest rate on borrowings during the year ended December 31, 2016 was 1.16%. As of December 31, 2016, we had no borrowings outstanding under this program. The commercial paper program can be used for short-term needs that arise and can be repaid with cash flows from operations.

Revolving Credit Facility

In July 2015, we entered into an amendment to our existing committed, unsecured revolving credit facility to increase the borrowing capacity to $2.2 billion, extend the maturity date to July 2020 and increase the size of the accordion option to $500.0 million. We subsequently exercised $50.0 million of the accordion option to bring the total availability to $2.25 billion. The weighted average interest rate on borrowings during the year ended December 31, 2016 was 1.86%. As of December 31, 2016, we had no borrowings outstanding under this facility. The revolving credit facility contains various covenants and restrictive provisions that limit our ability to incur additional indebtedness, make investments or loans and create liens and require us to maintain a net funded indebtedness to total capitalization ratio, as defined in the agreement. We were in compliance with all covenants under the agreement at December 31, 2016. If we fail to perform our obligations under the covenants, the revolving credit commitment could be terminated, and any outstanding borrowings under the facility could be declared immediately due and payable.

Term Loan Facility

In February 2015, Nabors Industries, Inc., our wholly owned subsidiary, entered into an unsecured term loan facility for $300.0 million with a three-year maturity, which was fully and unconditionally guaranteed by us. Under the new term loan facility, we were required to prepay the loan upon the closing of the Merger, or if we otherwise disposed of assets, issued term debt, or issued equity with net proceeds of more than $70.0 million, subject to certain exceptions. On March 27, 2015, we repaid the $300.0 million term loan, according to the terms of the agreement using a portion of the cash consideration received in connection with the Merger and the facility was terminated.

In September 2015, Nabors Industries, Inc. entered into a new five-year unsecured term loan facility for $325.0 million, which is fully and unconditionally guaranteed by us. The term loan facility contains a mandatory prepayment of $162.5 million due in September 2018. Borrowings under this facility will bear interest for periods of one, two, three or six months, at an annual rate equal to LIBOR, plus the applicable interest margin. The interest margin is based on our long-term unsecured credit rating for debt as in effect from time to time. The weighted average interest rate on borrowings at December 31, 2016 was 1.76%. As of December 31, 2016, we had $162.5 million outstanding under this facility, which was repaid in January 2017.

Short‑Term Borrowings

We had 15 letter‑of‑credit facilities with various banks as of December 31, 2016. Availability and borrowings under our letter-of-credit facilities are as follows:


	December 31,
	2016
	(In thousands)
Credit available	$	758,906
Less: Letters of credit outstanding, inclusive of financial and performance guarantees		150,424
Remaining availability	$	608,482