Odfjell Drilling is focused on maintaining a robust balance sheet and conservative capital allocation strategies. As part of this focus, we will continue to deleverage our company by reducing our net debt to EBITDA ratio over time whilst maintaining solid liquidity to manoeuvre the cycles and capture attractive growth opportunities.

To facilitate our long term strategy, our capitalisation structure includes a mixture of bank facilities and a rated bond which are detailed below.

InstrumentUSD 390m senior secured 1st lien bond (Aberdeen & Atlantic)USD 197m senior secured term loan facility (Nordkapp)USD 175m senior secured revolving credit facility (Stavanger RCF tranche)USD 125m senior secured revolving credit facility (Stavanger term loan tranche)
Borrower:Odfjell Rig III LtdOdfjell Rig V LtdOdfjell Invest LtdOdfjell Invest Ltd
Guarantors:Odfjell Drilling Ltd and various subsidiaries Odfjell Drilling Ltd and various subsidiaries Odfjell Drilling Ltd and various subsidiaries Odfjell Drilling Ltd and various subsidiaries
Collateral Rigs:Deepsea Aberdeen and Deepsea AtlanticDeepsea NordkappDeepsea StavangerDeepsea Stavanger
Loan principle:USD 390mUSD 197mUSD 175mUSD 125m
Maturity:May 2028January 2029February 2028February 2028
Amortisations:USD 20m semi-annuallyUSD 8.55m per quarterQuarterly see graph belowQuarterly see graph below
Financial Covenants:i.Equity Ratio ≥ 30%
ii.Free Liquidity ≥ USD 50m
iii.Current Ratio ≥ 1.0x
i.Equity Ratio ≥ 30% and
Equity ≥ USD 600m
ii.Leverage Ratio ≤ 5.0x
iii.Current Ratio ≥ 1.0x
iv.Free Liquidity ≥ USD 50m and Total Liquidity ≥ 5% of IBD
i.Equity Ratio ≥ 30% and
Equity ≥ USD 600m
ii.Leverage Ratio ≤ 3.0x
iii.Current Ratio ≥ 1.0x
iv.Free Liquidity ≥ USD 50m and Total Liquidity ≥ 7.5% of IBD
i.Equity Ratio ≥ 30% and
Equity ≥ USD 600m
ii.Leverage Ratio ≤ 3.0x
iii.Current Ratio ≥ 1.0x
iv.Free Liquidity ≥ USD 50m and Total Liquidity ≥ 7.5% of IBD
Distribution restrictions:i.Leverage ratio ≤ 3.00 (reducing to 2.00 from December 2025)
ii.Total cash (including undrawn RCF) ≥ $150 million (reducing to $100 million after completion of the Company’s final Special Periodic Survey in H1 2025)
i.Leverage Ratio ≤ 3.0x
ii.Free cash ≥ $75 million
i.Leverage Ratio ≤ 3.0x
ii.Free cash ≥ $75 million
i.Leverage Ratio ≤ 3.0x
ii.Free cash ≥ $75 million

Repayment Profile

Odfjell Drilling has no significant debt maturities until 2028 and has a stable repayment profile, allowing for strong free cash flow generation.

Bond Details:

Debt Level: First lien security related to the Deepsea Aberdeen and Deepsea Atlantic

Issue: USD 390,000,000

Coupon: 9.25%

ISIN: NO0012921172

Maturity Date: May 2028

Currency: USD

Bond Terms:

Bond Terms, 30 May 2023

Credit Rating Agency Reports

Odfjell Drilling Ltd and the Odfjell Rig III Bond is rated by S&P and Moody’s with ratings of B+ / BB (S&P) and B2 / B2 (Moody’s), respectively.

To access the individual reports, please use the following hyperlinks.

S&P Credit Rating Report

Moodys Credit Rating Report

Odfjell Rig III Financial Reports

Q2 and First Half year of 2023 Financial Results

Q3 2023 Financial Results

Q4 2023 and Full year of 2023 Financial Results