logo
Share SHARE
FONT-SIZE Plus   Neg

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Fiat Chrysler Automobiles NV (FCAU) is recalling nearly 26 thousand Chrysler 200s to fix a transmission issue that may prevent the vehicle from shifting into "park." Chrysler said that certain 2015-model year Chrysler 200 vehicles with V6 engines were affected. Chrysler blamed "inconsistent assembly... Gap reported an increase in fourth-quarter profit, as same store sales climbed 11 percent at its Old Navy brand, partly offset by currency impact. Earnings for the quarter topped Wall Street estimates by a penny, while sales were in line with expectations. J.C. Penney Co. Inc. (JCP) Thursday reported a swing to loss in the fourth-quarter from a profit last year, reflecting the absence of benefits from hefty tax gains recorded last year, despite a higher-than-expected revenue growth. Shares of the struggling department store chain plunged a near 10 percent,...
comments powered by Disqus
Follow RTT