Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

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

10/11/2013 9:31 AM ET

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

Editors Pick
The Reserve Bank of New Zealand on Thursday raised its Official Cash Rate by 25 basis points, to 3.00 percent from 2.75 percent. The decision was in line with expectations, and it marks the second straight month with a rate hike following 24 straight meetings in which the rate was not changed. New Zealand's economic expansion has considerable momentum, with GDP estimated to have grown by 3.5 percent in the year to March. Apple Inc. said Wednesday after the markets closed that its second quarter profit rose 7% from last year, as sales surged and margins improved amid strong sales of its iPhones. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a slightly downbeat revenue forecast for the current quarter. Stocks moved mostly lower during trading on Wednesday, giving back some ground after trending higher over the past several sessions. Selling pressure was relatively subdued, however, limiting the downside for the markets. The major averages all closed in the red, although the tech-heavy Nasdaq underperformed its counterparts by a wide margin.
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.