Valaris DS 13 (fka. Atwood Admiral)

[escveritas]

12/06/2016

HOUSTON – Atwood Oceanics Inc. and Daewoo Shipbuilding & Marine Engineering Co. (DSME) have agreed to delay the delivery of the newbuild ultra-deepwater drillships, Atwood Admiral and Atwood Archer, by two years to Sept. 30, 2019 and June 30, 2020, respectively.

In connection with the delay, Atwood will make a payment of $125 million for theAtwood Archer on or before Dec. 15, 2016, as well as a payment of $15 million on the earlier of June 30, 2018 or the delivery date.

For theAtwood Admiral, the company will make a payment of $10 million on the earlier of Sept. 30, 2017 or the delivery date.

DSME will extend all remaining milestone payments, which include $83.9 million plus fees and interest for theAtwood Admiral and $165.0 million plus fees and interest for the Atwood Archer, until Dec. 30, 2022.

Rob Saltiel, president and CEO, said: “The restructuring of payment and delivery schedules for theAtwood Admiral and Atwood Archer is an important step in our capital structure management, enhancing liquidity and improving capital commitment timing.

“The two-year extensions on the delivery dates greatly improve our confidence that we will secure suitable drilling services contracts on both rigs prior to taking delivery. We now have the opportunity to earn revenues on these rigs that will cover some or all of the final payments to the shipyard.

“We appreciate the flexibility that DSME has provided to Atwood Oceanics in response to this severe industry downturn.”

[escveritas]

Valaris Limited Announces Pricing of $400 Million Upsized Private Placement of Additional 8.375% Senior Secured Second Lien Notes Due 2030

HAMILTON, Bermuda--(BUSINESS WIRE)-- Valaris Limited (NYSE: VAL) (“Valaris”) and its wholly-owned subsidiary, Valaris Finance Company LLC (together with Valaris, the “Issuers”), announced today the pricing of their private placement (the “Offering”) under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”), of $400 million in aggregate principal amount of additional 8.375% Senior Secured Second Lien Notes due 2030 (the “Additional Notes”). The Offering was upsized to $400 million in aggregate principal amount of Additional Notes from the original offering size of $350 million in aggregate principal amount of Additional Notes. The Additional Notes mature on April 30, 2030 and will be issued at 100.75% of par. The Offering is expected to close on August 21, 2023, subject to customary closing conditions.

Valaris intends to use the net proceeds of the Offering to finance the aggregate purchase price of approximately $337 million (assuming a December 31, 2023 delivery date) for the drillships VALARIS DS-13 and VALARIS DS-14, which Valaris intends to exercise its right to take delivery of on or prior to December 31, 2023, and for general corporate purposes. If Valaris does not elect to exercise its right for either or both drillships, Valaris intends to use the net proceeds of the Offering (not otherwise used to finance the purchase price of either drillship) for general corporate purposes.

The Additional Notes will constitute a further issuance of the Issuers’ 8.375% Senior Secured Second Lien Notes due 2030 in the aggregate principal amount of $700 million, which were issued on April 19, 2023 (the “Existing Notes”). The Additional Notes will form a single series with, and have the same terms (other than the initial offering price) as, the Existing Notes.

[escveritas]

Valaris Takes Delivery of Newbuild Drillships VALARIS DS-13 and DS-14

HAMILTON, Bermuda--(BUSINESS WIRE)-- Valaris Limited (NYSE: VAL) (“Valaris” or the “Company”) announced today that it has exercised its options and taken delivery of newbuild drillships VALARIS DS-13 and DS-14 for an aggregate purchase price of approximately $337 million.

President and Chief Executive Officer Anton Dibowitz said, “We are delighted to add these two rigs, the highest specification drillships remaining at the South Korean shipyards, to our fleet. These additions increase our drillship fleet to 13 rigs, reinforcing its position as one of the most technically capable in the industry.”

Dibowitz added, “Following the successful contracting of six of our stacked drillships since mid-2021, the purchase of VALARIS DS-13 and DS-14 increases our operating leverage to the attractive ultra-deepwater floater market. Based on our positive market outlook, growing future demand and strong customer interest in these rigs, we believe that the purchase of these high specification drillships at compelling prices will generate attractive returns.”

VALARIS DS-13 and DS-14 will be mobilized from South Korea to Las Palmas, Spain, where the rigs will be stacked until they are contracted for work. The purchase of the rigs is expected to increase the Company’s fourth quarter 2023 capital expenditures by approximately $355 million, representing the purchase price for the rigs and costs associated with preparing the rigs to mobilize from South Korea to Las Palmas. In addition, the Company anticipates 2024 capital expenditures of approximately $35 million primarily related to mobilization costs.