09:28 AM EDT, 07/17/2024 (MT Newswires) -- Nabors Industries ( NBR ) said Wednesday it has started a $550 million private placement of senior guaranteed notes maturing in 2031.

According to the energy services company, the notes will rank equally in right of payment with all of its existing and future senior obligations, including its 7.50% senior guaranteed notes due 2028.

The company said it expects to use the net proceeds from the offering, together with cash on hand, to redeem all of its 7.25% senior guaranteed notes due 2026. Any remaining funds will be used for general corporate purposes, including paying down other outstanding debt, the company added.