Another offshore firm has raised a flag to warn of financial hardship. Houston-based Vantage Drilling is in discussions with members of an informal group of senior secured term loan lenders and secured noteholders, representing more than $1.5bn of the company’s secured debt, on the terms of a deleveraging transaction. The specific terms under discussion remain subject to non-disclosure agreements among the company and the secured lender group’s members. In connection with these discussions, Vantage has not made a $40.8m interest payment on its 7.5% senior secured notes and has elected to utilise the grace period under the notes. This interest payment grace period expires on December 2 this year.
In a release, Vantage stressed it continues to maintain “ample liquidity” to maintain efficient operations worldwide, with more than $200.6m of available cash on hand.
Vantage has three ultra-deepwater drillships, as well as four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs.