SDLP - Seadrill Partners LLC Announces Pricing of Term Loan B and Revolving Loan
London, United Kingdom, February 17, 2014Â - Seadrill Partners LLC ("Seadrill
Partners" or the "Company") (NYSE: SDLP) announced today that it has upsized the
proposed US$1.7 billion term loan B announced on January 31 to US$1.8 billion
and priced the term loan at Libor plus 3%, the low end of the range. Concurrent
with the term loan, the Company will obtain a US$100 million secured revolving
credit facility.
Subsidiaries of the Company will be the borrowers under the facilities,
guaranteed by certain further subsidiaries and secured by four of the Company's
ultra-deepwater drilling rigs and certain other assets. Total secured debt for
the four assets is approximately US$1.1 billion and proceeds of the term loan
are to be used to refinance existing indebtedness, pay transaction expenses, and
for general company purposes. The loans are subject to customary closing
conditions.
In conjunction with the formation of Seadrill Partners in 2012 and subsequent
dropdown of the West Sirius and West Leo, back-to-back and intercompany loans
were used to finance the debt portion of the transactions. As well as being
overly reliant on Seadrill Limited, this structure had an aggressive
amortization profile that was not optimal for Seadrill Partners. The 1%
amortization profile of the new facility will enable the Company to more
efficiently manage its replacement capital expenditure reserves by investing in
new assets. In conjunction with the term loan B and revolver Seadrill Partners
obtained a credit rating of BB- / Ba3. As a rated entity Seadrill Partners'
access to and cost of funding will be improved, thus increasing financial
flexibility.
Graham Robjohns, CEO of Seadrill Partners, says in a comment:" This transaction
is an important step in the development of Seadrill Partners. The new structure
creates a more efficient capital structure, independent of Seadrill Limited, and
makes additional funds available for growth. Â Seadrill Partners has the high
quality fleet, visible growth profile, and long term contracted cash flows
required to access the term loan market at attractive rates. The pricing
achieved is evidence of the market's appreciation of these characteristics and
highlights the unique qualities of Seadrill Partners."
Deutsche Bank Securities Inc., is acting as Sole Global Coordinator. Deutsche
Bank Securities Inc., Credit Suisse Securities (USA) LLC, Barclays Bank PLC, and
RBC Capital Markets, are acting as joint lead arrangers and joint bookrunners.
ABN AMRO Capital USA LLC, HSBC Securities (USA) Inc., ING Bank NV and BNP
Paribas Securities Corp., are acting as Co-Managers.
The statements in this press release that are not historical facts may be
forward-looking statements. These forward-looking statements, which include
statements related to the term loan and revolving loan and the anticipated use
of proceeds therefrom, are based upon the current beliefs and expectations of
Seadrill Partners' management and are subject to risks and uncertainties, which
could cause actual results to differ from the forward-looking statements. The
information set forth herein should be read in light of such risks. Seadrill
Partners does not assume any obligation to update the information contained in
this press release.
Questions should be directed to:
Graham Robjohns: Chief Executive Officer
Rune Magnus Lundetræ: Chief Financial Officer
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Seadrill Partners LLC via GlobeNewswire
[HUG#1762602]
