SDLP - Seadrill Partners LLC Announces Closing of Term Loan B
June 27 2014 - 8:49AM
London, United Kingdom, June
27, 2014 - Seadrill Partners LLC ("Seadrill Partners"
or the "Company") (NYSE: SDLP) announced today that it has closed
the proposed US$1.1 billion add-on senior secured term loan B
announced on June 5. The add-on term loan was upsized from
US$1 billion and priced at the existing rate of Libor plus 3%.
The loan will be borrowed by two of the Company's
subsidiaries, as borrowers, guaranteed by certain of the Company's
existing and future subsidiaries, and secured by six of the
Company's ultra-deepwater drilling rigs and certain other assets on
substantially the same terms as the Company's existing US$1.8
billion term loan incurred in February 2014. Proceeds of the
term loan are to be used to refinance certain existing
indebtedness, pay transaction expenses, and for general company
purposes.
In conjunction with the formation of Seadrill
Partners in 2012 and subsequent dropdown of the West Auriga,
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. This
add-on term loan is a continuation of the financing strategy put in
place in February with a 1% amortization profile that further
enhances the Company's ability to efficiently manage its
replacement capital expenditure reserves by investing in new
assets. The Company continues to be rated BB- / Ba3 following
this transaction.
Graham Robjohns, CEO of Seadrill Partners, says in
a comment: "We are pleased to have completed another important step
in improving Seadrill Partners' financial structure and positioning
the Company for future growth. The addition of another two
units to the Borrower Group has increased contract duration and
further diversifies the cash flows supporting the Company's
credit. By upsizing the loan, the market has acknowledged
Seadrill Partners' long term contracted cash flow, visible growth
profile and high quality fleet. The Company's ability to
obtain financing at attractive margins in a challenging dayrate
environment demonstrates Seadrill Partners' financial flexibility
and unique characteristics."
Deutsche Bank Securities Inc., is acting as Sole
Global Coordinator. Deutsche Bank Securities Inc., Barclays
Bank PLC and Goldman Sachs Bank USA are joint lead arrangers and
joint bookrunners. ABN AMRO Capital USA LLC, BNP Paribas,
Crédit Agricole Corporate and Investment Bank and ING Bank NV 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 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#1805813
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