SDLP - Seadrill Partners LLC Announces Pricing of Term Loan B and Revolving Loan
February 17 2014 - 1:36PM
London, United Kingdom,
February 17, 2014 - Seadrill Partners LLC ("Seadrill
Partners" or the "Company") (NYSE: SDLP) announced today that it
has upsized the proposed US$1.7 billion term loan B announced on
January 31 to US$1.8 billion and priced the term loan at Libor plus
3%, the low end of the range. Concurrent with the term loan,
the Company will obtain a US$100 million secured revolving credit
facility.
Subsidiaries of the Company will be the borrowers
under the facilities, guaranteed by certain further subsidiaries
and secured by four of the Company's ultra-deepwater drilling rigs
and certain other assets. Total secured debt for the four
assets is approximately US$1.1 billion and proceeds of the term
loan are to be used to refinance existing indebtedness, pay
transaction expenses, and for general company purposes. The
loans are subject to customary closing conditions.
In conjunction with the formation of Seadrill
Partners in 2012 and subsequent dropdown of the West Sirius and
West Leo, back-to-back and intercompany loans were used to finance
the debt portion of the transactions. As well as being overly
reliant on Seadrill Limited, this structure had an aggressive
amortization profile that was not optimal for Seadrill
Partners. The 1% amortization profile of the new facility
will enable the Company to more efficiently manage its replacement
capital expenditure reserves by investing in new assets. In
conjunction with the term loan B and revolver Seadrill Partners
obtained a credit rating of BB- / Ba3. As a rated entity
Seadrill Partners' access to and cost of funding will be improved,
thus increasing financial flexibility.
Graham Robjohns, CEO of Seadrill Partners, says in
a comment:" This transaction is an important step in the
development of Seadrill Partners. The new structure creates a
more efficient capital structure, independent of Seadrill Limited,
and makes additional funds available for growth. Seadrill
Partners has the high quality fleet, visible growth profile, and
long term contracted cash flows required to access the term loan
market at attractive rates. The pricing achieved is evidence
of the market's appreciation of these characteristics and
highlights the unique qualities of Seadrill Partners."
Deutsche Bank Securities Inc., is acting as Sole
Global Coordinator. Deutsche Bank Securities Inc., Credit
Suisse Securities (USA) LLC, Barclays Bank PLC, and RBC Capital
Markets, are acting as joint lead arrangers and joint
bookrunners. ABN AMRO Capital USA LLC, HSBC Securities (USA)
Inc., ING Bank NV and BNP Paribas Securities Corp., are acting as
Co-Managers.
The statements in this press release that are not
historical facts may be forward-looking statements. These
forward-looking statements, which include statements related to the
term loan and revolving loan and the anticipated use of proceeds
therefrom, are based upon the current beliefs and expectations of
Seadrill Partners' management and are subject to risks and
uncertainties, which could cause actual results to differ from the
forward-looking statements. The information set forth herein should
be read in light of such risks. Seadrill Partners does not assume
any obligation to update the information contained in this press
release.
Questions should be directed to:
Graham Robjohns: Chief Executive Officer
Rune Magnus Lundetræ: Chief Financial
Officer
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Seadrill Partners LLC via Globenewswire
HUG#1762602
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