Rowan to redeem remaining Title XI notes in second, third quarters

By Marisa Wong

Madison, Wis., April 27 - Rowan Cos., Inc. has retired a portion of its notes guaranteed by the U.S. Department of Transportation Maritime Administration (MarAd) under the Title XI Federal Ship Financing Program and expects to retire the remainder of the notes during the second and third quarters of 2012, according to an 8-K filing with the Securities and Exchange Commission.

As of March 31, the outstanding principal amount of the notes was $226.1 million.

The remaining notes will be retired for $250.5 million, which includes principal, make-whole premiums and accrued interest.

According to the filing, Rowan requested in February that MarAd continue to guarantee the notes even after closing of the company's planned redomestication to the United Kingdom.

MarAd denied the company's request for the guarantees after the redomestication.

As a result, Rowan is required to retire the notes under the make-whole provisions of the notes indenture, the filing said.

Rowan is a contract drilling services company based in Houston.

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