HOUSTON, July 24, 2015 /PRNewswire/ -- Paragon
Offshore plc ("Paragon") (NYSE: PGN) today announced that certain
wholly owned subsidiaries of the company, which were part of the
company's acquisition of Prospector Offshore Drilling S.A.
("Prospector"), have closed the combined $300 million sale-leaseback financing facility
that was announced on June 4,
2015. Net of fees and expenses, Prospector received net
proceeds of approximately $292
million.
The company also disclosed that a wholly-owned subsidiary has
signed an agreement with Shanghai Waigaoqiao Shipbuilding Co.,
LTD., to extend the delivery date of the high specification Friede
and Goldman JU-2000E jackup Prospector 6 to April 15, 2016. Under the terms of the
agreement, no payments are due to the shipyard until the delivery
date and upon completion of the delivery protocol.
"The successful completion of these two milestones is a
fulfillment of the plans we laid out earlier this year," said
Randall D. Stilley, President and
Chief Executive Officer of Paragon. "The financing proceeds
have substantially increased the company's liquidity. We are
continuing to evaluate potential options for using the proceeds to
strengthen our balance sheet and enhance shareholder value.
In the meantime, our business continues to generate cash flow
through our safe, reliable, and efficient operations and we are
actively reducing our operating expenses both in the office and the
field. Moreover, our recent announcement of the addition of a
combined total of six years of backlog on three of our jackup units
illustrates the ongoing desirability of our standard specification
assets while many newbuild rigs continue to sit idle."
Forward-Looking Disclosure Statement
This release contains forward-looking statements. Statements
regarding sale-leaseback proceeds, drilling and shipyard contracts,
market conditions, liquidity and operating expenses, as well as any
other statements that are not historical facts in this release, are
forward-looking statements that involve certain risks,
uncertainties and assumptions. These include but are not limited to
risks associated with the general nature of the oil and gas
industry, risks associated with the operation of Paragon as a
separate, publicly traded company, actions by regulatory
authorities, customers and other third parties, and other factors
detailed in the "Risk Factors" section of Paragon's annual report
on Form 10-K for the fiscal year ended December 31, 2014, and in Paragon's other filings
with the SEC, which are available free of charge on the SEC's
website at www.sec.gov. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
indicated.
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs.
Paragon's operated fleet includes 34 jackups, including two high
specification heavy duty/harsh environment jackups, and six
floaters (four drillships and two semisubmersibles). Paragon's
primary business is contracting its rigs, related equipment and
work crews to conduct oil and gas drilling and workover operations
for its exploration and production customers on a dayrate basis
around the world. Paragon's principal executive offices are located
in Houston, Texas. Paragon is a
public limited company registered in England and Wales with company number 08814042 and
registered office at 20-22 Bedford
Row, London, WC1R 4JS,
England. Additional information is
available at www.paragonoffshore.com.
For additional
information, contact:
|
|
|
|
For
Investors
|
Lee M.
Ahlstrom
|
&
Media:
|
Senior Vice President
– Investor Relations, Strategy and Planning
|
|
+1.832.783.4040
|
Logo - http://photos.prnewswire.com/prnh/20140731/132134
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/paragon-offshore-closes-previously-announced-300-million-sale-leaseback-transaction-and-extends-delivery-of-jackup-prospector-6-300118351.html
SOURCE Paragon Offshore plc