April 27, 2018 / 3:02 PM / 25 days ago

BRIEF-Odfjell Drilling to buy $505 mln rig from Samsung for Aker BP work

April 27 (Reuters) - Odfjell Drilling Ltd:

* ODFJELL DRILLING PURCHASES “DEEPSEA NORDKAPP” (FORMER STENA MIDMAX) AND IS

* PLEASED TO ANNOUNCE THAT AKER BP HAS TODAY AWARDED ODFJELL DRILLING A 2 YEAR FIRM DRILLING CONTRACT WITH 1+1 YEAR OPTIONAL PERIODS

* DAY RATES FOR DRILLING CONTRACT WILL BE BASED ON MARKET TERMS TO BE DETERMINED PRIOR TO COMMENCEMENT OF DRILLING OPERATIONS

* IN ADDITION TO MARKET LINKED DAY RATE, A PERFORMANCE BONUS AS AGREED IN ALLIANCE AGREEMENT WITH AKER BP, AS ANNOUNCED ON 21 NOVEMBER 2017, WILL APPLY

* CONTRACT HAS A MINIMUM VALUE OF USD 245 MILLION, SUBJECT TO CERTAIN ADJUSTMENTS. COMMENCEMENT OF DRILLING OPERATIONS IS EXPECTED IN Q2/Q3 2019

* TO PURCHASE FORMER CALLED DRILLING UNIT STENA MIDMAX ( “UNIT”) FOR USD 505 MILLION

* UNIT IS AN ENHANCED MOSS MARITIME CS-60 WINTERIZED AND PURPOSELY BUILT FOR HARSH ENVIRONMENT AREAS

* HAS AGREED TO PAY A PRE-DELIVERY INSTALMENT OF APPROXIMATELY USD 220 MILLION WITHIN 30 APRIL 2018, WHILE REMAINING PURCHASE PRICE IS PAYABLE ON DELIVERY OF UNIT

* IN CONSTRUCTIVE DIALOGUE WITH BANK LENDERS FOR USD 325 MILLION NEW SENIOR SECURED TERM LOAN

* SENIOR SECURED TERM LOAN IS EXPECTED TO HAVE A SIMILAR STRUCTURE AS ODFJELL DRILLING’S EXISTING TERM LOANS

* HAS NOW SIGNED A PREFERENCE SHARE INVESTMENT AGREEMENT AND A WARRANT INVESTMENT AGREEMENT WITH AN AFFILIATE OF AKASTOR ASA TO CARRY OUT A USD 75 MILLION PREFERENCE SHARE ISSUE AND AN ISSUANCE OF WARRANTS FOR 5,925,000 COMMON SHARES Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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