Odfjell to get $525 million new debt, extend $250 million facility

By Wendy Van Sickle

Columbus, Ohio, May 28 – Odfjell Drilling Ltd. received firm bank commitments for a refinancing of its debt set to mature in 2019, according to a notice.

The company’s Deepsea Atlantic and Deepsea Stavanger subsidiaries will get a new $425 million senior facility, replacing their existing $400 million facility, and a new $100 million junior facility. Each of the new facilities will have a five-year tenor.

The senior facility will be available in one drawing after the facility documentation is signed, and the junior facility will be available in three drawings until March 31, 2020.

The senior facility will amortize in $12.5 million quarterly installments, starting after six months.

The junior facility has no fixed installments, but will under certain conditions be partly repaid annually starting in the third quarter of 2021 using free and available liquidity above $175 million of Odfjell Drilling Group.

Interest will be based on Libor plus a margin depending on the level of net debt to EBITDA, resulting in an estimated combined average margin above Libor of around 400 basis points for the term of the facilities.

Meanwhile, Odfjell Drilling Services will amend and extend its $250 million facility to November 2021.

The facility will be divided into a $150 million non-amortizing tranche A and a $100 million tranche B with semiannual installment payments of $20 million beginning in November.

Interest will be Libor plus an average margin of 470 bps.

Odfjell is a shipping and tank terminal company based in Bergen, Norway.

© 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.