Prospector Offshore Drilling raising cash to pay for jack-up rig
- Business & Finance
Prospector Offshore Drilling S.A. announces that its newly formed subsidiary, Prospector Finance II S.à r.l. has secured a fully committed Senior Secured Credit Facility (the “Senior Credit Facility”), subject to documentation, in the amount of USD 270 million.
Prospector Finance II S.à r.l. is also contemplating the issuance of a USD 100 million second lien bond (the “Bond Loan”) in the amount of USD 100 million. The net proceeds from the Senior Credit Facility and the contemplated Bond Loan will be used to fully finance the delivery of PROSPECTOR 5 jack-up drilling rig, expected early June 2014, refinance existing debt secured by PROSPECTOR 1 jac-up rig, and for general corporate purposes.
PROSPECTOR 1 is currently on a special standby rate while Total E&P UK Limited’s Franklin Location is being prepared to accept the rig and is expected to start full operations in May 2014.
The Senior Credit Facility is being arranged by ABN AMRO Capital USA LLC and DNB Bank ASA. The interest rate on the five-year Senior Credit Facility will be L+350bps with a seven and a half year amortization profile. The Senior Credit Facility will be secured by a first mortgage on PROSPECTOR 1 and PROSPECTOR 5 and will be guaranteed by the Company. All other terms will be customary for this type of facility.
DNB Markets, Pareto Securities and Swedbank have been appointed as joint lead managers and bookrunners of the contemplated Bond Loan. The term of the contemplated Bond Loan will be five-years and the Bond Loan will be secured by a second lien mortgage on PROSPECTOR 1 and PROSPECTOR 5 and guaranteed by the Company.