Noble Corporation Prices Offering of Senior Notes

ZUG, Switzerland, July 21 /PRNewswire-FirstCall/ -- Noble Corporation (NYSE: NE) announced today that its indirect wholly-owned subsidiary, Noble Holding International Limited ("NHIL"), has priced an offering of $1.25 billion aggregate principal amount of senior notes in three separate tranches, with $350 million of 3.45% senior notes due 2015, $500 million of 4.90% senior notes due 2020, and $400 million of 6.20% senior notes due 2040.  The weighted average coupon of all three tranches is 4.91%.  Noble Corporation, a Cayman Islands company ("Noble-Cayman"), and a direct wholly-owned subsidiary of Noble, will fully and unconditionally guarantee the notes on a senior unsecured basis.

The estimated net proceeds of approximately $1.24 billion are expected to be used to finance a portion of the purchase price for the pending acquisition of privately-held FDR Holdings Limited ("Frontier"), which acquisition is expected to close by the end of July 2010 and is subject to customary closing conditions.  If the pending Frontier acquisition is not consummated or the merger agreement with Frontier is terminated on or prior to 5:00 pm, New York City time, on September 30, 2010, NHIL will be required to redeem all of the notes at 101% of their aggregate principal amount, plus accrued and unpaid interest from the date of initial issuance to but excluding the date of redemption.  Pending the application of funds from the offering, the net proceeds will be invested in U.S. government obligations, bank deposits or other secure, short-term investments.

Barclays Capital Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC are acting as the book-running managers.  HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA), Inc., BNP Paribas Securities Corp. and DnB NOR Markets, Inc. are serving as co-managers.  Copies of the prospectus supplement and prospectus may be obtained by calling Barclays Capital Inc. toll-free at (888)-603-5847, SunTrust Robinson Humphrey, Inc. toll-free at (800)-685-4786 or Wells Fargo Securities, LLC toll-free at (800)-326-5897.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Offers of securities will be made only by means of a prospectus supplement and prospectus filed with the U.S. Securities and Exchange Commission. The prospectus and prospectus supplement are part of a shelf registration statement that has become effective under the U.S. Securities Act of 1933, as amended.

Noble-Cayman is a direct, wholly-owned subsidiary of Noble Corporation, a Swiss corporation.  Noble-Cayman is a leading offshore drilling contractor for the oil and gas industry. Noble-Cayman performs, through its subsidiaries, contract drilling services with a fleet of 62 offshore drilling units (including two rigs currently under construction) located worldwide, principally in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, and West Africa.

NHIL is an indirect, wholly-owned subsidiary of Noble-Cayman. NHIL owns, through its subsidiaries, a fleet of 59 mobile offshore drilling units (including two rigs currently under construction) that are used in the performance of worldwide contract drilling services, principally in the Middle East, India, Mexico, the Mediterranean, the North Sea, Brazil, and West Africa.

About Noble Corporation

Noble is the parent of Noble-Cayman and NHIL, and Noble's shares are traded on the New York Stock Exchange under the symbol "NE". Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com.

SOURCE Noble Corporation