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 success."
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.
Media Contact: Denny Smith, Nabors, +1 281 775 8038
SOURCE Nabors Industries Ltd.