Ocean Rig obtains $450 million in senior secured credit facilities

By Jennifer Chiou

New York, June 14 - Ocean Rig ASA has entered into $450 million of senior secured credit facilities via DnBNOR ASA, including a $380 million six-year revolver, $50 million 21/2-year term loan and $20 million uncommitted guarantee and hedging facility.

The $380 million revolver includes two tranches, $280 million and $100 million, and will bear interest at Libor plus a margin between 110 and 185 basis points. Ocean Rig expects the rate to be 150 bps at initial drawdown.

The hedging facility is secured by a first-priority lien on the drilling rigs Leiv Eiriksson and Eirik Raude and certain related assets.

Together, the bank loan from DnBNOR and a new offering of $150 million senior secured second-lien notes will help prepay all existing nonconvertible debt and significantly lower interest payments.

Stavanger, Norway-based Ocean Rig owns and operates drilling units built for deep waters and extreme conditions.

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