logo
Share SHARE
FONT-SIZE Plus   Neg

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

Seadrill Partners LLC(SDLP), 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

Quick Facts

Editors Pick
A little over two months after reporting positive results from its first late-stage psoriasis trial, Dermira Inc. (DERM) is back with some more good news for its investors. Tata Steel UK announced that it has reached deal with the trade unions regarding a proposal to close the British Steel Pension Scheme to future accrual. The company also guaranteed investments and employment. The company said it will next week start consultation with its employees regarding the pension scheme closure. Instead, employees would be offered a competitive defined contribution scheme. Philip Morris International Inc. has filed an application with the U.S. Food and Drug Administration to market a new type of cigarette that holds potentially less health risks than conventional cigarettes. The new type of cigarette electronically heats tobacco to produce a vapor without burning it, making it less harmful.
comments powered by Disqus
Follow RTT