Ocean Rig Completes Refinancing
Ocean Rig priced the $150 million bond issue Thursday, June 23. The coupon is fixed at 8.375% and maturity is July 1, 2013. Interest will be paid semi-annually. The company has an optional redemption right from July 1, 2009 at 104.188%, July 1, 2010 at 102.094% and July 1, 2011 at 100%. Until July 1, 2008, Ocean Rig may redeem up to 35% of the bonds issued through an equity claw back at 108.375%. Morgan Stanley acted as book runner with DnBNOR Markets as co-manager. Trading of the bonds commenced on June 23, 2005.
The Executive Chairman, Geir Aune, said "I am pleased to announce the completion of a successful transaction that represents the final step in the turnaround of Ocean Rig. The company has now established a solid platform for future business development."
As announced by the company on June 14, 2005, the company has also raised a total of $450 million in new credit facilities including $430 of new bank loans. The credit facilities were arranged by DnBNOR Bank at LIBOR plus a variable margin between 1.10% and 1.85%. The credit facilities have semi annual instalments and final maturity after 6 years. The blended cost for the bank loans and the bond is about 6% which over the next 12 months is expected to result in approximately $18 million reduced interest costs, compared to the level of interest costs for the current financing.
Manages 14 Offshore Rigs
- Avenue Capital Urges Ocean Rig To Hire Advisers (Oct 17)
- Rig Contractor Ocean RIG Files For Bankruptcy Protection In US (Mar 28)
- Ocean Rig Acquires an Ultra Deepwater Drillship for $65M (Apr 27)