SDLP - West Leo Early Termination Litigation Update
July 18 2018 - 8:11AM
London, United
Kingdom, July 18, 2018 - Seadrill
Partners LLC ("SDLP" or "the Company") announces today that Tullow
Ghana Limited ("Tullow") will not be appealing the English High
Court ruling in favor of Seadrill Ghana Operations Limited
("Seadrill Ghana") relating to the early termination of the West
Leo contract and Seadrill Ghana has received approximately $248
million, inclusive of interest, but net of withholding tax, VAT and
legal expenses.
Under the terms of the amendments
to our $2.8 billion Term Loan B ("TLB") credit agreement completed
in February 2018, we agreed to use a portion of the judgement
proceeds after deducting certain litigation costs and taxes ("Net
Litigation Proceeds") for a par prepayment of the TLB. We expect to
finalize the determination of the Net Litigation Proceeds in due
course and a $100 to $124 million prepayment to be made within 5
business days of determining the Net Litigation Proceeds.
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 offshore drilling markets, the Company's ability to make
cash distributions, the expected performance of the drilling units
in the Company's fleet, estimated duration of customer contracts,
contract dayrate amounts, contract backlog, forecasts of operating
income and Adjusted EBITDA and the ability of the Company and
Seadrill Limited to negotiate with lenders 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 offshore
drilling market conditions including supply and demand, dayrates,
customer drilling programs and effects new rigs on the market,
contract awards and rig mobilizations, contract backlog, the
performance of the drilling units in the Company's fleet, delay in
payment or disputes with customers, the outcome of any pending
litigation, our ability to successfully employ our drilling units,
procure or have access to financing, ability to comply with loan
covenants, liquidity and adequacy of cash flow from operations,
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. 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 Corporate Solutions on behalf
of Nasdaq 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
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