Noble Corp (NE) - Issuing more bonds to fund future growth... I'm on Board!
Noble announced that the company has priced an offering $1.1 Billion of notes. The bonds represent $300 Million worth of 5-year notes, $400 Million worth of 10-year notes, and $400 Million worth of 30 year notes. The weighted average coupon for the entire offering is 4.71%. The reason for doing this is to simply pay down debt for the new joint-Bully venture with Shell and to pay down the revolver. This should not worry investors too much, since the company is doing this in order to provide liquidity during the defacto moratorium. I am still very exicited about the company's future prospects.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.