SDLP - Amendment to Certain Credit Facilities
April 29 2016 - 1:55AM
London, United Kingdom, April 29,
2016 - Seadrill Partners LLC ("the Company") announces
today that it has consented to the agreement reached between
Seadrill Limited and its banking group to amend certain covenants
related to the following secured credit facilities where both
parties are guarantors:
-
US$1.45 billion facility relating to
the West Vela
-
US$420 million facility relating to the
West Polaris
-
US$440 million facility relating to the
T-15 & T-16
These three facilities relate to rigs purchased by
the Company from Seadrill Limited which contain identical covenants
to those in other Seadrill Limited facilities.
The amendments form part of a package of measures
agreed between Seadrill Limited, our largest shareholder and former
parent, and its banks as the first phase of a broader plan to
refinance and recapitalize its business. Please see Seadrill
Limited's Annual Report on Form 20-F filed with the U.S SEC on
April 28th 2016 for
additional details.
The financial covenant amendments extend to 30
June 2017 and relate to the following:
-
A reset of the leverage covenant.
-
A revised definition of the Equity
Ratio to exclude the impact of any change to the market value of
our rigs.
-
A suspension of the provision that
allows lenders to receive a prepayment if rig values decline below
a minimum value relative to the loan balance outstanding.
For additional detail on the terms of the
agreement, please refer to our Annual Report on Form 20-F filed
with the U.S. SEC on April 28th 2016.
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 projected
changes in the Company's cash distributions, the Company's
anticipated growth strategies and its ability to re-contract its
drilling rigs 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; hire rates and factors affecting supply
and demand for drilling rigs; the financial condition of the
Company's existing or future customers; 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 us 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.
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#2008229
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