4/A: Varde Partners Disgorges $833K in Nabors Options Premiums

Varde Partners Inc. and related entities have disgorged $833,738 in premiums from call options on Nabors Industries Ltd. shares that expired within six months of writing, as required by SEC Rule 16b-6(d).

Summary

• An amendment to a Form 4 filing, originally submitted on July 22, 2025, has been filed by Varde Partners Inc. and its related entities.
• The reporting persons have disgorged $833,738 to Nabors Industries Ltd. (NBR) in compliance with Rule 16b-6(d) of the Securities Exchange Act of 1934.
• This amount represents the aggregate premiums received for writing call options on NBR common shares that expired within six months of their writing date.
• Specifically, 2,743 NBR US Call 35 option contracts with a Volume Weighted Average Price (VWAP) of $248, and 1,002 NBR US Call 40 option contracts with a VWAP of $153, expired on July 18, 2025.
• The original Form 4 contained slightly incorrect VWAP figures for these options ($249 and $154, respectively), which this amendment corrects.
• Varde Partners Inc. and its related entities are identified as 10% owners and potentially directors of Nabors Industries Ltd.

Sentiment

Score: 5

Explanation: The filing reports a mandatory disgorgement of funds due to a short-swing profit violation, which is a negative for the reporting entity but a neutral compliance action overall for the market.

Positives

• Nabors Industries Ltd. receives $833,738, which is a direct financial benefit to the company.
• The filing demonstrates compliance with SEC regulations regarding short-swing profits, reinforcing market integrity.

Negatives

• Varde Partners Inc. and its related entities were required to disgorge $833,738, representing a loss of previously received premiums.
• The original Form 4 contained incorrect VWAP figures, necessitating an amendment.

Risks

• Varde Partners Inc. faces potential reputational risk due to the short-swing profit violation, even though it has been corrected through disgorgement.
• There is a potential for increased regulatory scrutiny on Varde Partners' future trading activities in Nabors Industries Ltd. securities.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• The disgorgement of $833,738 from Varde Partners (a 10% owner and director of Nabors Industries Ltd.) to Nabors Industries Ltd. (the issuer) constitutes a related party transaction.

Stakeholder Impact

• Shareholders of Nabors Industries Ltd. (NBR) are positively impacted by the company's receipt of $833,738.
• Varde Partners Inc. and its related entities are negatively impacted by the mandatory disgorgement of $833,738, representing a loss of previously gained premiums.
• Regulatory authorities (SEC) are positively impacted as the filing demonstrates the enforcement of Section 16(b) rules, reinforcing market integrity.

Key Dates

Recommendation

This filing is an amendment correcting a short-swing profit violation and reporting a mandatory disgorgement of funds. It does not provide new operational or financial performance data that would alter an investment thesis for Nabors Industries Ltd. The amount disgorged is not material enough to significantly impact the company's financials or outlook.

Keywords

Varde Partners, Nabors Industries, NBR, SEC Form 4/A, beneficial ownership, short-swing profit, Rule 16b-6(d), options, disgorgement, equity securities