Odfjell Drilling finalizes $325M loan deal for new offshore rig

Offshore driller Odfjell Drilling has signed the final agreement for a $325 million bank loan that will be used to finance rig acquisition.

As previously reported, Odfjell Drilling in August accepted a firm offer for a USD 325 million senior secured term loan facility for Deepsea Nordkapp.

The facility includes a tranche of USD 162.5 million guaranteed by K-SURE and a 5-year commercial bank tranche of USD 162.5 million.

As per the terms revealed in August, the loan will be available at delivery of the Deepsea Nordkapp rig, expected in Q1 2019.

The newbuild semi-submersible drilling rig Deepsea Nordkapp was recently named in South Korea.

The rig was previously ordered by Stena Drilling back in 2013, but Stena in 2017 canceled the order claiming Samsung Heavy Industries was unable to complete and deliver the unit within the contractually agreed timeframe.

Odfjell then in April 2018 agreed to buy the rig for $505 million and won a contract for it Aker BP. Aker BP awarded Odfjell Drilling a two-year firm drilling contract with 1+1 year optional periods.

The Odfjell Nordkapp is a 6th generation dynamically positioned harsh environment and winterized semi-submersible of Moss enhanced CS 60E design.