Odfjell Drilling Secures $775Million in Debt Refinancing
Odfjell Drilling has today received firm bank commitments for a refinancing related to its 2019 debt maturities, as further described below.
Deepsea Atlantic and Deepsea Stavanger USD 425 million senior bank facility and USD 100 million junior bank facility
The existing facility covering Deepsea Atlantic and Deepsea Stavanger, currently with USD 400 million outstanding, will be replaced by a new senior facility of USD 425 million. In addition, a junior facility of USD 100 million will be entered into.
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The senior facility will be repaid by quarterly instalments of USD 12.5 million, first time six months after drawdown. The junior facility has no fixed instalments, but shall on certain conditions be partly repaid annually from 3Q 2021 by free and available liquidity of the Odfjell Drilling Group above USD 175 million, however so that any such repayment shall be limited to 50% of the previous year’s net result and adjusted for any identified liquidity requirements. Dividends and other distributions on the common shares of Odfjell Drilling are subject to lender’s prior written consent for as long as the junior facility is outstanding.
Interest is payable at LIBOR plus an overall margin depending on the level of net debt to EBITDA for the Odfjell Drilling group, resulting in an estimated combined average margin of around 400 bps over LIBOR during the tenor of the facilities.
The senior facility is available in one drawing after signing of the facility documentation and the junior facility is available in three drawings until 31 March 2020. The tenor of both facilities is 5 years.
Drilling Services USD 250 million bank facility
The Drilling Services facility, currently with USD 250 million outstanding, will be amended and extended to November 2021. The facility will be divided in two tranches; Tranche A of USD 150 million which is non-amortising, and Tranche B of USD 100 million with semi-annual instalments of USD 20 million, first time in November. Interest is payable at LIBOR plus an average margin of 470 bps.
The commitments are mutually dependent, and otherwise subject to final documentation and customary conditions precedent for drawdown.
