Vantage Drilling subsidiary solicits consents for 11½% secured notes

By Jennifer Chiou

New York, May 11 - Vantage Drilling Co. announced the launch of wholly owned subsidiary Offshore Group Investment Ltd.'s consent solicitation for its 11½% senior secured first-lien notes due 2015.

The solicitation is set to end at 5 p.m. ET on May 19.

The company is seeking consents from holders of more than a majority of the notes to amend the indenture to:

• Permit the issue of up to another $225 million of the notes, the proceeds of which would be used to purchase from Vantage all of the equity interests of P2020 Rig Co.;

• Allow Vantage to complete the related purchase of the subsidiary that is party to the drilling contract for the Aquamarine Driller;

• Authorize the issue of up to $125 million of convertible debt; and

• Modify Offshore Group's restrictions on maintaining funds in foreign deposit accounts.

The Vantage subsidiary said that it expects to pay a consent fee of $5.00 in cash for each $1,000 principal amount of notes upon closing of the solicitation.

Vantage said that it expects to use a portion of the proceeds from the planned acquisitions to, among other things, repay and terminate its term loan facility agreement dated Aug. 26, 2009.

Jefferies & Co., Inc. is the solicitation agent (888 708-5831 or call collect 203 708-5831) and D.F. King & Co., Inc. is the information agent (212 269-5550 for banks and brokers or 800 290-6427).

Vantage is a Houston-based energy drilling company.

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