Sevan Drilling ASA: New Financing Agreed
Oslo, 23 July 2013:
Sevan Drilling (OSE: SEVDR) announces that it has renegotiated and agreed the principle terms of an amended five year secured corporate bank facility of USD 1,750 million at significantly improved terms, for the purpose of refinancing all outstanding debt of the company related to the two operational drilling rigs Sevan Driller and Sevan Brasil, as well as financing for the delivery of Sevan Louisiana and Sevan Drilling Rig 4, both currently under construction at COSCO shipyard. The facility is managed and co-ordinated by ING Bank N.V.
Following previous announcements regarding a contemplated refinancing by way of a corporate bank facility and a proposed second lien bond issue, and Seadrill's acquisition of a controlling stake on 27 June 2013, Sevan Drilling has renegotiated and agreed the terms of the proposed corporate bank facility. The new corporate bank facility will be increased to a total amount of USD 1,750 million, of which USD 1,400 will relate to the full refinancing of the existing bank facilities on Sevan Driller and Sevan Brasil, as well as the necessary take-out financing of Sevan Louisiana which is scheduled for delivery in late September 2013. The remaining USD 350 million will relate to take-out financing of Sevan Drilling Rig no 4, scheduled for delivery in April 2014, and will be available to the company subject to an acceptable charter on certain minimum terms. The facility will be fully guaranteed by Seadrill on market terms.
The increased amounts available under the new financing mean that the company will not proceed with the earlier announced bond issue. With the proceeds from the new corporate bank facility, the company will be fully financed and have secured sufficient funding for delivery of Sevan Louisiana and Sevan Drilling Driller 4, deferred liabilities, pre-operational costs, mobilization cost and general corporate purposes. The new agreed financing, taking into account the increased loan amounts, costs and other applicable conditions, represents a significant improvement in the company's financing terms.
The new corporate bank facility syndicate is co-ordinated by ING Bank N.V as agent and will be syndicated to a group of commercial banks and export credit agencies. It is expected that closing of the financing and first disbursement will take place in connection with delivery of Sevan Louisiana.
For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Jon Willmann, CFO (+47 905 60 406)
About Sevan Drilling:
Sevan Drilling ASA is an international offshore drilling contractors specializing in the ultra deepwater segment. Sevan Drilling ASA is listed on Oslo Børs.
This press release and the information herein are subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.