Paragon Offshore finalizes term loan B spread at Libor plus 275 bps

By Sara Rosenberg

New York, July 11 – Paragon Offshore set pricing on its $650 million senior secured seven-year term loan B at Libor plus 275 basis points, the tight end of the revised Libor plus 275 bps to 300 bps talk and down from initial talk of Libor plus 300 bps to 325 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99˝ and 101 soft call protection for one year.

Earlier in syndication, the term loan was upsized from $545 million, the discount was changed from 99 and the call protection was extended from six months.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays are the lead banks on the deal.

The loan is being done in connection with the company’s spinoff from Noble Corp., which is expected to occur in the third quarter.

The company is also issuing $1.08 billion of senior notes, downsized from $1,185,000,000 due to the term loan upsizing.

In addition, the company entered into an $800 million senior secured revolving credit facility due 2019 with commercial and investment banks on June 17.

Paragon Offshore is a London-based provider of standard specification offshore drilling rigs.

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