Odfjell Drilling refinances semi-submersible pair
Releasing its quarterly results today, Norwegian offshore driller Odfjell Drilling has revealed a refinancing deal has been offered to its rig-owning entity Deepsea Invest by DNB Bank for semi-submersibles Deepsea Atlantic and Deepsea Stavanger.
The new facility is for $525m and will refinance a senior secured term loan facility that matures in November 2016. It will be repaid by quarterly installments of $12.5m, starting in the first quarter of 2017. The interest rate will be 415 basis points above LIBOR and tenor is 3 years from drawdown which is scheduled for September.
Odfjell Drilling has also managed to amend financial covenants across its group credit facilities. The new covenants have been adjusted to a leverage ratio of maximum 6.0 through 2016, 5.5 through 2017 and a maximum 5.0 onwards. Equity ratio has been adjusted to a minimum of 30%.
Odfjell posted revenues of $183m for the quarter, down $103m on the same quarter as last year, and an EBITDA of $73m.