Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Seadrill Partners To Buy Tender Rig Owner T-16 For $200 Mln

Seadrill Partners LLC(SDLP: Quote), an owner and operator of offshore drilling rig, Friday said it entered into an agreement to acquire the company that owns the tender rig T-16 from Seadrill Limited, for $200 million. Seadrill Partners will issue about 3.3 million unregistered common units to Seadrill Limited, at a price of $32.29, amounting to approximately $107 million. The remaining $93 million will be lessened as debt outstanding under the credit facility secured by T-16, Seadrill Partners said. The deal is expected to close within October.

Seadrill Partners further said, upon closure of the deal, the Board has considered a quarterly cash distribution increase of about 7 percent to between $0.025 and $0.03. This is expected to fully effective with respect to the December quarter.

The T-16 began operations in September 2013 under a five-year contract with Chevron in Thailand at an initial dayrate of $115,500. The debt secured by the T-16 matures in December 2017 and has an interest rate of LIBOR plus a margin of 3.25 percent per annum.

Click here to receive FREE breaking news email alerts for Seadrill Partners LLC and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Stocks showed a lack of direction over the course of the trading day on Friday after failing to sustain an initial upward move. Despite the choppy trading, the Dow once again managed to end the session at a new record closing high. The major averages turned in a mixed performance on the day. President Barack Obama delivered a statement Thursday evening thanking members of Congress for voting to approve legislation granting the U.S. military the authority to train and arm moderate Syrian rebels fighting against the terrorist group known as the Islamic State. While the Conference Board released a report on Friday showing a continued increase by its index of leading U.S. economic indicators in the month of August, the pace of growth showed a significant slowdown compared to the previous month.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.