The proceeds from the planned issue will be used to fund the construction of the third rig, which will be constructed under a fixed price turnkey contract of US $524 million. Expected delivery from the yard in Singapore is January 2010.
The bond will be 7 years with a coupon of 6 months NIBOR + 5.75%, and the bond will have second priority mortgage in the third rig behind maximum US $200 million of debt with better priority which is expected to be secured later.
The selling period for the bond issue is expected to start today. The planned private placement is subject to board approval.
Pareto Securities ASA is mandated as lead manager and Fearnley Fonds ASA as co-manager for the bond issue.
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