Scorpion Offshore successfully secured a $52 million loan facility ("Loan Facility") to complete its working capital financing requirements. This Loan Facility is subject to final documentation which is expected to be finalized within days.
The Loan Facility is for 6 months and is to be guaranteed by two of the Company's largest shareholders, Seadrill Ltd. and Mr. Christen
Sveaas. In return for providing these guarantees, the guarantors will be paid a fee of 8.5%.
With the proceeds from this Loan Facility, the Company does not plan to raise any additional funding for its first six operating rigs.
Scorpion intends to repay this Loan Facility by selling the Offshore Mischief. In this respect, the Company is talking to several
interested parties with resolution anticipated by the end of the year. The sale of the Offshore Mischief would eliminate any requirement for any additional Company funding and provide the necessary funds to repay this loan facility.
Scorpion Offshore Ltd is a Bermuda based corporation founded in 2005, which owns 6 state-of-the-art offshore Jackup rigs built between
2007 and 2009, with one additional identical rig under construction. The rigs have a total contract backlog of approximately $820 million,
an average contract coverage of just over two years for the first 6 rigs.
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