Deepsea Atlantic and Deepsea Stavanger USD 425 million senior bank facility and USD 100 million junior bank facility
The existing facility covering Deepsea Atlantic and Deepsea Stavanger, currently with USD 400 million outstanding, will be replaced by a new senior facility of USD 425 million. In addition, a junior facility of USD 100 million will be entered into.
The senior facility will be repaid by quarterly instalments of USD 12.5 million, first time six months after drawdown. The junior facility has no fixed instalments, but shall on certain conditions be partly repaid annually from 3Q 2021 by free and available liquidity of the Odfjell Drilling Group above USD 175 million, however so that any such repayment shall be limited to 50% of the previous year’s net result and adjusted for any identified liquidity requirements. Dividends and other distributions on the common shares of Odfjell Drilling are subject to lender’s prior written consent for as long as the junior facility is outstanding.
Interest is payable at LIBOR plus an overall margin depending on the level of net debt to EBITDA for the Odfjell Drilling group, resulting in an estimated combined average margin of around 400 bps over LIBOR during the tenor of the facilities.
The senior facility is available in one drawing after signing of the facility documentation and the junior facility is available in three drawings until 31 March 2020. The tenor of both facilities is 5 years.
Drilling Services USD 250 million bank facility
The Drilling Services facility, currently with USD 250 million outstanding, will be amended and extended to November 2021. The facility will be divided in two tranches; Tranche A of USD 150 million which is non-amortising, and Tranche B of USD 100 million with semi-annual instalments of USD 20 million, first time in November. Interest is payable at LIBOR plus an average margin of 470 bps.
The commitments are mutually dependent, and otherwise subject to final documentation and customary conditions precedent for drawdown.
For further queries, please contact:
Eirik Knudsen, VP Corporate Finance & Investor Relations
+47 934 59 173
Aberdeen, United Kingdom
28 May 2019
Odfjell Drilling Ltd.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Odfjell Drilling Ltd. reports for the second quarter of 2019
Odfjell Drilling has today signed a firm drilling contract with oil major Total for drilling offshore South Africa with the 6th generation semi-submersible Deepsea Stavanger
Odfjell Drilling has today received firm bank commitments for a refinancing related to its 2019 debt maturities, as further described below.
Following the Equality Act 2010 (Gender Pay Gap information) Regulations 2017, all UK companies with more than 250 employees will have to publish details of their gender pay gap in line with the Government’s Gender Pay Gap Reporting Requirements.
Odfjell Drilling’s business in Norway is growing as two new semisubmersibles are joining the fleet in 2019. In the next months, we will employ more than 200 operational personnel, engineers and administrative support personnel to support our growing North Sea activities.