Odfjell Drilling enters into $450 mln credit facility agreement
Odfjell Drilling Services Ltd. has entered into a $450 million senior secured credit facility agreement with Danske Bank A/S and DNB Bank ASA as Coordinators, and Danske Bank A/S, DNB Bank ASA, Nordea Bank Norge ASA and Swedbank AB (publ) as Mandated Lead Arrangers.
The facility is divided in a revolving credit of $150 million and a term loan of $300 million, the latter of which is to be repaid in semi-annual instalments of $20 million. The facility has a tenor of 5 years.
Amounts borrowed under the facility shall be applied towards refinancing of an existing facility dated 4 November 2011 (maturing in 2015) with an outstanding amount of $267 million and for general corporate purposes of the Odfjell Drilling group.
The facility will be serviced by cash flow generated by the Well Services and Drilling & Technology businesses and management of Mobile Offshore Drilling Units.
Interest will be payable at the rate per annum of LIBOR plus a margin ranging from 200 basis points to 325 basis points, depending on the gross interest bearing debt to EBITDA measured on the Odfjell Drilling Services group.
The facility is guaranteed by Odfjell Drilling Ltd. and certain subsidiaries of Odfjell Drilling Services Ltd. and contains undertakings and covenants, and terms and conditions which are considered to be customary for similar types of bank financings.