Vantage Drilling subsidiary tenders for $1 billion 11½% notes due 2015

By Toni Weeks

San Diego, Oct. 2 - Vantage Drilling Co. subsidiary Offshore Group Investment Ltd. began a tender offer and consent solicitation for up to $1,000,001,000 of its $2 billion of 11½% senior secured first-lien notes due 2015, according to a press release.

Holders will receive $1,115 per $1,000 principal amount. The amount includes a $30 fee for notes tendered by 5 p.m. ET on Oct. 12, the consent payment date. Tenders may not be revoked after this date.

The company is seeking consents from holders of more than a majority in principal amount of the notes to modify some restrictive covenants in the indenture governing the notes, amend and restate the intercreditor agreement relating to the notes and amend current collateral documents. The amendments would facilitate the company's plans to refinance the notes tendered with up to $1,125,000,000 of new senior secured debt and to obtain an additional $500 million of new senior secured debt, the proceeds of which would be used for the final construction payment of the Tungsten Explorer, the company's new deepwater drillship currently under construction.

The tender offer expires at midnight ET on Oct. 29.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager. Global Bondholder Services Corp. (212 430-3774 or 866 804-2200) is the depository and information agent.

Vantage Drilling is a Houston-based energy drilling company.

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