Songa Offshore completes $1.1 billion senior secured credit facility

By Jennifer Chiou

New York, Oct. 31 – Songa Offshore SE announced that it has completed the documentation for its $1.1 billion senior secured credit facility for the financing of two rigs. The facility consists of a revolving pre-delivery financing of $90 million per rig and a post-delivery financing of $550 million per rig.

According to a company filing, the pre-delivery loan will be priced at Libor plus 300 basis points, and the post-delivery loan will be priced at Libor plus 250 bps.

The post-delivery financing has a tenor of five years and a roughly 11.5-year amortization profile.

The company said the financing was substantially oversubscribed.

Proceeds will be used to finance the last two Cat D drilling rigs, Songa Encourage and Songa Enabler.

Songa is an offshore drilling company based in Limassol, Cyprus, and Oslo.

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