SUGAR LAND (LON:LAND), Texas - Noble Corporation plc (NYSE: NE, CSE: NOBLE), an offshore drilling contractor, has completed the issuance of $800 million in senior notes, the company announced today. The newly issued 8.000% Senior Notes, due in 2030, are an addition to the $600 million of the same notes issued last year.
This financial move is primarily aimed at funding Noble's impending merger with Diamond Offshore Drilling (OTC:DOFSQ), Inc., as well as addressing general corporate needs. The notes are guaranteed by several of Noble's subsidiaries that also back the company's revolving credit facility.
The additional senior notes share terms with the existing ones, differing only in aspects such as the issue date and the commencement of interest accrual. They are expected to be traded under the same CUSIP numbers as the existing notes, post a 40-day period for those sold under Regulation S, as per the Securities Act of 1933.
The offering was targeted at qualified institutional buyers in the United States and international investors in compliance with Regulation S. These notes have not been registered under the Securities Act or any state securities laws, and therefore cannot be offered or sold in the U.S. without registration or an exemption from these requirements.
Noble's press release includes forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ from projected outcomes. The company has stated that it does not assume any obligation to update these statements.
The issuance is based on a press release statement from Noble Corporation plc, a company with a history dating back to 1921, known for its fleet of offshore drilling units serving the oil and gas industry globally.
In other recent news, Noble Corporation reported a significant increase in their Q2 adjusted EBITDA, which rose by 50% to $271 million. This notable financial growth was driven by the commencement of key contracts and a steady market for rigs. Furthermore, the company has announced a 25% increase in its dividend for Q3 of 2024, reflecting confidence in its financial solidity and commitment to shareholder returns. The company's total backlog stands strong at $4.2 billion, with expectations of industry backlog rising in 2025. The Diamond transaction is anticipated to close by the first quarter of 2025, pending shareholder and regulatory approvals. On the analyst front, Noble Corporation is bidding for contracts globally, with firm awards expected in the first half of next year. Lastly, despite some industry-wide challenges, the company's leadership has expressed optimism for the future.
InvestingPro Insights
In light of Noble Corporation's recent financial activities, including the completion of an $800 million senior notes issuance, investors may find the following InvestingPro Insights particularly relevant:
Despite a challenging month for the stock, Noble Corporation is trading at a low P/E ratio of 8.69, which may suggest an undervaluation relative to its near-term earnings growth. This is further supported by its adjusted P/E ratio over the last twelve months as of Q2 2024, which stands at 8.99. The company's PEG ratio during the same period is notably low at 0.16, indicating potential for future earnings growth that is not yet reflected in the stock's price.
Noble Corporation's revenue growth has been robust, with a 24.14% increase over the last twelve months as of Q2 2024. This growth is consistent with the company's quarterly revenue increase of 9.0% in Q2 2024. Furthermore, the company's gross profit margin remains strong at 43.07%, showcasing its ability to maintain profitability amid its operations.
InvestingPro Tips highlight that Noble Corporation's liquid assets exceed its short-term obligations, and analysts predict the company will be profitable this year. These factors, combined with the company's moderate level of debt, could provide a measure of financial stability as it proceeds with its merger with Diamond Offshore Drilling, Inc.
For investors seeking additional insights, InvestingPro offers a wealth of tips, with 5 more tips available for Noble Corporation at https://www.investing.com/pro/NE. These tips could further inform investment decisions and strategies surrounding the company's stock.
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