Pacific Drilling Secures USD 1 Bln Loan to Pay for New Drillships

Pacific Drilling Secures USD 1 Bln Loan to Pay for New Drillships

Pacific Drilling S.A. has signed a $1 billion senior secured credit facility agreement to finance construction of the Pacific Sharav and Pacific Meltem. The term loan made pursuant to the credit facility will have a maturity of 5 years from the delivery date of the Pacific Meltem.

Construction of the Newbuilds commenced in Spring 2012 at Samsung Heavy Industries in South Korea. Delivery of the rigs is expected in the fourth quarter of 2013 and May 2014.

A portion of the funding will be provided before delivery of the vessels, with all drawdowns from the facility subject to satisfaction of customary conditions precedent.

The transaction was led and structured by Citibank and DNB, and supported by the Norwegian export credit agencies Garanti-Instituttet for Eksportkreditt (GIEK) and Eksportkreditt Norge AS. Also acting as Mandated Lead Arrangers were ABN AMRO, ING, SEB and Standard Chartered Bank.

“We are pleased to announce the signing of this credit facility and appreciate the efforts of the lending group in enabling us to meet our goal of securing long-term financing for our 6th and 7th drillships,” stated Pacific Drilling CEO Chris Beckett. “Our strong relationships with leading commercial banks and export credit agencies should allow us to balance our financing sources and costs as we continue to grow our asset base.”

Legal counsel for the company was Vinson & Elkins LLP, and legal counsel for the lenders was Holland & Knight.

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Pacific Drilling, February 20, 2013