Ocean Rig Executes $450 Million Credit Facility
Ocean Rig ASA reports that Ocean Rig Norway has executed a senior secured credit facilities agreement in an aggregate amount of $450 million with DnBNOR ASA. This credit facilities agreement includes a $380 million reducing revolving credit facility with a 6 year term, a $50 million term loan with a 2.5 year term, and a $20 million uncommitted guarantee and hedging facility, secured by a first-priority lien on the drilling rigs Leiv Eiriksson and Eirik Raude and certain related assets. The credit facilities will be guaranteed by Ocean Rig ASA, Ocean Rig 1 AS and Ocean Rig 2 AS. The $380 million credit facility includes two tranches, of $280 million and $100 million, respectively. The availability of the $100 million tranche under the credit facility is subject to the satisfaction of certain conditions precedent. The Company expects to satisfy these conditions in the third quarter this year. The revolving credit facility will bear an interest at LIBOR plus a variable margin between 1.10% and 1.85% depending on contract backlog. The Company expects the margin to be 1.50% at the time of initial drawdown.
The Company also announces the launch of an offering of $150 million senior secured second lien notes by Ocean Rig Norway. The notes will be guaranteed by Ocean Rig ASA, Ocean Rig 1 AS and Ocean Rig 2 AS. The notes and the guarantees will be secured, on a second-priority basis, by liens on all the collateral securing Ocean Rig Norway's credit facilities agreement and the hedging facility.
Together, the bank loan from DnBNOR and the senior secured notes will, pending a successful placing of the senior secured notes and the satisfaction of certain conditions precedent, allow the Company to prepay all its existing nonconvertible debt. The new financing will reduce the Company's refinancing risk over the medium term and will immediately result in a significantly lower interest cost to the Company.
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)