R&B Falcon Corporation reports that its wholly owned indirect subsidiary, RBF Exploration Co., had completed a $250 million project financing and that proceeds from the financing had been received. The financing consisted of two tranches of notes in the amounts of $200 million and $50 million, respectively. The first tranche was rated "AA" by Standard & Poor's and Duff & Phelps Credit Rating Co.; the second tranche was rated "BBB+" by Duff & Phelps Credit Rating Co. The project financing proceeds will be used in connection with the construction of the ultra deepwater/harsh environment semisubmersible, DEEPWATER NAUTILUS, which is being built at Hyundai Heavy Industries in South Korea and is due to be delivered in December 1999. The 8,000-foot water depth capable NAUTILUS has a five-year contract with Shell Deepwater Development Inc. in the Gulf of Mexico, which is projected to commence in the first quarter of 2000. BTM Financial Services, Inc. led the financing transaction as arranger. Paul B. Loyd, Jr., the Company's Chairman and CEO, said, "We are pleased to complete this financing which further bolsters an already strong liquidity picture at the Company. It is also important to note that the cost of capital achieved in the transaction is very favorable due to the project nature of the financing."