Syndication has been completed for the debt facilities supporting the acquisition financing for the Peregrine I drillship.
The US $259 million senior facilities were underwritten by GE Transportation Finance and GE Energy Financial Services jointly with WestLB AG, New York Branch. This transaction was oversubscribed and further elevates GE and WestLB's position in the market as leaders in the drillship and semisubmersible financing arena. The syndication, launched in February, was a great success, especially given the challenging market environment.
The senior facilities were structured as follows: US $233.8 million 7-year amortizing Acquisition Loan, L+200 and US $25 million 7-year amortizing Dry Docking Loan, L+200.
These funds facilitated Mike Mullen Energy Equipment Resource Inc's acquisition of the Peregrine I drillship, currently under contract with Petrobras from a subsidiary of Houston-based Transocean Inc. The Peregrine I is currently drilling in off the coast of Brazil.
The Sponsors are comprised of Mike Mullen Energy Equipment Resources, Inc. a Dallas-based offshore asset investor; Pareto Worldwide Offshore, a Norwegian private equity fund, and GE Energy Financial Services, a unit of GE.
The offshore drilling vessel has the capacity to drill in 5,200 feet of water to a depth of 25,000 feet. A subsidiary of Etesco Construcoes E Comercio Ltda, an experienced Brazilian offshore rig operator, will operate the vessel under a contract with Petrobras.
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