RDS Ultra-Deepwater begins tender offer, consent bid for 11 7/8% notes

By Angela McDaniels

Tacoma, Wash., Aug. 29 - RDS Ultra-Deepwater, Ltd. began a tender offer and consent solicitation for its $270 million 11 7/8% senior secured notes due 2017, according to a company news release.

The notes are guaranteed by parent company Rubicon Drilling Services-Aluguer de Equipamentos Tecnologicos, Unipessoal, Lda. (Zona Franca da Madeira).

The company is offering $1,113.95 per $1,000 principal amount of notes. This includes a consent payment of $30.00 for each note tendered by the consent deadline, 5 p.m. ET on Sept. 12.

The tender offer will expire at 11:59 p.m. ET on Sept. 26.

The offer is subject to a financing condition and the receipt of the consent of holders of at least a majority of the outstanding principal amount of the notes.

Holders who tender their notes must consent to the proposed amendments to the notes, and holders may not deliver consents without tendering the related notes.

If the majority consent is obtained and the proposed amendments are adopted, substantially all of the restrictive covenants and some events of default contained in the indenture governing the notes will be eliminated.

If the consent of holders of at least 66 2/3% of the outstanding principal amount of the notes is obtained, the proposed amendments will also release the security interest that noteholders have in the note collateral.

The settlement date for notes tendered by the consent deadline is expected to be Sept. 19. The settlement date for notes tendered after the consent deadline but before the expiration time is expected to be Sept. 30.

The issuer currently intends to redeem any notes that remain outstanding following the early settlement date.

The dealer manager and solicitation agent is Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147). The information agents are D.F. King & Co., Inc. (banks and brokers call 212 269-5550, others call 800 697-6975) and D.F. King (Europe) Ltd. (+44 0 20 7920 9700).

The parent company owns an ultradeepwater semi-submersible drilling rig. The note issuer is a wholly owned special-purpose finance subsidiary. Both are part of Grupo R, a Mexico City-based group of companies servicing the energy and industrial sectors in Mexico.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.