Pacific Drilling completes $1bn note offering

Pacific Drilling has announced the closing of its previously announced $1bn private offering of senior secured notes as part of its reorganisation plan.

The notes consist of $750m of notes due 2023 and $250m of notes due 2024. The net proceeds of the offerings have been funded into separate escrow accounts pending Pacific Drilling’s emergence from bankruptcy.

“The successful execution of these financial transactions marks an important step in our Company’s restructuring under the plan. We believe the plan will strengthen our Company’s balance sheet by reducing its leverage and delivering a substantial amount of new capital. Upon consummation of the Plan, we expect our Company’s cash position will be significantly enhanced, and we will be in a much stronger financial position to take advantage of our dedicated, high-specification deepwater drillship fleet in anticipation of an improving market for offshore drilling services,” said Pacific Drilling CEO Paul Reese.

Pacific Drilling’s reorganisation plan received full support from the company’s majority shareholder Quantum Pacific in August and the company expected a quick emergence from chapter 11.

Pacific Drilling currently operates a fleet of seven drillships with an average of six years.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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