SDLP - Seadrill Partners agrees to acquire an additional 28% interest in Seadrill Operating LP
July 17 2014 - 1:27PM
London, United Kingdom, July
17, 2014 - Seadrill Partners LLC (NYSE: SDLP) (the
"Company") announced today that it has entered into an agreement
with Seadrill Limited ("Seadrill") pursuant to which it will
acquire an additional 28% interest in Seadrill Operating LP for
approximately $373 million. After completion of the
acquisition, the Company will own a 58% interest in Seadrill
Operating which is now in line with the ownership level of the
Company's other ultra-deepwater operating company which is 51%
owned. The objective of the transaction is to increase
exposure to assets that are well known to the Company and that have
stable cash flows. The transaction is expected to be cash flow and
net asset value accretive and therefore to lead to increased
distributions.
The acquisition of additional interests is
expected to close before the end of July 2014 and will be financed
by funds from recent common unit offerings and surplus funds from
the Company's recent term loan B financing.
Seadrill Operating
Seadrill Operating has an ownership interest in
three ultra-deepwater drilling rigs, West Aquarius, West Leo and
West Cappella and one semi tender rig, West Vencedor.
Board Approval
The Board of Directors of the Company (the
"Board") and the Conflicts Committee of the Board (the "Conflicts
Committee") have approved the terms and conditions of the
acquisition of the additional 28% interest in Seadrill Operating.
The Conflicts Committee retained a financial advisor to assist with
its evaluation of the transaction. The acquisition is expected to
be accretive and is consistent with the Company's growth and
diversification strategy. The Board believes that the long-term
fundamental outlook for the offshore drilling industry remains
strong, and is positive about the Company's future growth
prospects.
FORWARD LOOKING
STATEMENTS
This news release includes forward looking
statements. Such statements are generally not historical in nature,
and specifically include statements about the Company's plans,
strategies, business prospects, changes and trends in its business
and the markets in which it operates. In particular, statements
regarding the Company's ability to complete the acquisition, its
financing of the acquisition and potential increases in
distributions are considered forward looking statements. These
statements are made based upon management's current plans,
expectations, assumptions and beliefs concerning future events
impacting the Company and therefore involve a number of risks,
uncertainties and assumptions that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, which speak only as of the date of this
news release. Important factors that could cause actual results to
differ materially from those in the forward looking statements
include, but are not limited to, the performance of the drilling
rigs in the Company's fleet, delay in payment or disputes with
customers, fluctuations in the international price of oil, changes
in governmental regulations that affect the Company or the
operations of the Company's fleet, increased competition in the
offshore drilling industry, and general economic, political and
business conditions globally. Consequently, no forward looking
statement can be guaranteed. When considering these forward looking
statements, you should keep in mind the risks described from time
to time in the Company's filings with the SEC, including its Annual
Report on Form 20-F (File No. 001-35704). The Company undertakes no
obligation to update any forward looking statements to reflect
events or circumstances after the date on which such statement is
made or to reflect the occurrence of unanticipated events. New
factors emerge from time to time, and it is not possible for the
Company to predict all of these factors. Further, the Company
cannot assess the impact of each such factor on its business or the
extent to which any factor, or combination of factors, may cause
actual results to be materially different from those contained in
any forward looking statement.
July 17, 2014
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#1829870
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