Songa Offshore secures $1.1B loan to finance construction of Cat D rigs

The company has received a firm commitment from banks and an Export Credit Agency for the financing of the Cat D 3 and 4 newbuilds with a pre-delivery financing of USD 90 million per rig and a post-delivery financing of USD 550 million per rig.

Songa Offshore says that the terms of the financing are at competitive terms and the company plans to complete final documentation of the transactions in third quarter 2014. The commercial tranche of the senior secured credit facility is underwritten.

The development of the Cat D semi-submersible drilling rigs has been initiated by Statoil, the international energy company. The Cat D drilling rig is a new generation drilling and well intervention vessel, purpose made for the needs for North Sea operations.

Also, in a separate statement, Songa Offshore said that the closing of the sales of the rigs Songa Mercur and Songa Venus from Songa Offshore SE to companies within the Opus Offshore Group, previously contemplated
to take place within second quarter 2014, is now scheduled to take place within the end of July 2014.