Ocean Rig UDW amends terms of $1.35 billion senior secured facility

By Susanna Moon

Chicago, Sept. 3 - Ocean Rig UDW Inc. said it signed a supplemental agreement to amend provisions of its $1.35 billion senior secured facility dated Feb. 28.

Under the terms of the agreement, the dividend restriction of up to 50% of preceding fiscal year net income will be amended to apply on a cumulative basis beginning July 1 (50% of cumulative net income and 100% of cumulative losses).

The terms also include a carve-out to pay additional dividends up to the higher of $150 million and 5% of the company's net tangible assets, according to a company press release.

Furthermore, the minimum interest coverage ratio requirement will be 2 times until June 30, 2015 and the maximum leverage ratio will be 6.5 times until June 30, 2014, 6 times until Dec. 31, 2014 and 5.5 times until June 30, 2015.

"These amendments will harmonize our restricted payment provisions and certain financial covenants with those of our other secured term loan facilities and notes," chairman and chief executive officer George Economou said in the press release.

The issuer is a Nicosia, Cyprus-based deepwater drilling services provider.

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