Odfjell Drilling Ltd : Participation in Deepsea Metro I financial restructuring
Odfjell Drilling AS, a subsidiary of Odfjell Drilling Ltd. ("Odfjell Drilling") is the manager of the drillship Deepsea Metro I (the "Drillship"), a vessel owned by Golden Close Maritime Corp. Ltd. ("GCMC"), a company owned 40 % by Odfjell Drilling through Deep Sea Metro Ltd.
GCMC has faced the same financial challenges as the oil and oil service industry in general, and has been in need of a long term financial solution. Odfjell Drilling has decided to contribute to a solution, whereby Odfjell Drilling AS as part of a larger restructuring of GCMC has accepted to enter into a four year management contract with a reduced fee, in return of receiving USD 40 million in bonds issued by GCMC. After the restructuring has been completed, the Manager will hold approximately 9 per cent of the senior secured bonds and the convertible bonds issued by GCMC. Odfjell Drilling's current indirect shareholding in GCMC, which was written down to zero in an impairment write down made in the second quarter of 2015, will be reduced to ~ nil after the restructuring. For further details on the restructuring and Odfjell Drilling AS' contribution in same reference is made to announcements made by GCMC today on Nordic ABM and on www.stamdata.no.
The restructuring is subject to approval from the bondholders in the 9.00 per cent Golden Close Maritime Corp. Ltd. Senior Secured Callable Bond Issue 2014/2019 (ISIN NO 001072202.8) issued by GCMC.
For further queries, please contact:
Eirik Knudsen, VP Corporate Finance & Investor Relations
+47 934 59 173
27 February 2017
Odfjell Drilling Ltd.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.