Scorpion Offshore Ltd. secured financing of $27.7 million (the "Note"), which will be used to meet the current progress payment under the Offshore Mischief construction contract.
The Note is unsecured and has a duration of 6 months and is being provided by the Company's largest shareholder, Seadrill Limited, at a coupon of 16% per annum.
The final remaining payment to the shipyard of $26.1 million is due at delivery of the Offshore Mischief which is scheduled for 30 April 2010.
The Offshore Mischief is currently being marketed for sale. The sale of the Offshore Mischief would eliminate any requirement for any additional Company funding and provide the necessary funds to repay the Note.
Scorpion Offshore Ltd is a Bermuda based corporation founded in 2005, which owns 6 state-of-the-art offshore jackup rigs built between 2007 to 2009, with one additional identical rig under construction.
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