Pacific Drilling Announces Proposed Private Offering of $750 Million Senior Secured Notes Due 2020
LUXEMBOURG--(BUSINESS WIRE)-- Pacific Drilling S.A. (NYS: PACD) (NOTC: PDSA) ("Pacific Drilling") announced today that it intends to offer, subject to market and other conditions, $750 million in aggregate principal amount of its senior secured notes due 2020 for sale in a private placement to eligible purchasers. Proceeds from this offering, together with the proceeds from Pacific Drilling's proposed $750 million senior secured term loan facility and entry into Pacific Drilling's proposed $500 million senior secured revolving credit facility, will be used to (i) repay in full existing borrowings under Pacific Drilling's Project Facilities Agreement, (ii) replace Pacific Drilling's existing temporary importation bond credit facilities, (iii) pay transaction fees and expenses incurred in connection with the proposed transactions and (iv) for general corporate purposes.
The notes will be guaranteed initially by our subsidiaries that own the Pacific Bora, the Pacific Mistral, the Pacific Scirocco or the Pacific Santa Ana (the "Collateral Vessels") and by certain other subsidiaries. The notes will be secured by liens on the Collateral Vessels and related assets, on an equal and ratable, first priority basis with the obligations under the proposed new senior secured revolving credit facility, the proposed new senior secured term loan facility and certain future obligations, subject to payment priorities in favor of the lenders under our new senior secured revolving credit facility.
The securities to be offered have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Pacific Drilling plans to offer and sell the notes only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
This press release includes statements regarding this private placement that may constitute forward-looking statements within the meaning of U.S. securities laws. These forward-looking statements involve certain risks and uncertainties, including, among others, Pacific Drilling's business plan may change as circumstances warrant and the private placement of senior secured notes may not ultimately be completed because of general market conditions or other factors. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Factors that can affect future results are discussed in Pacific Drilling's filings with the U.S. Securities and Exchange Commission. Pacific Drilling undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
William Restrepo, +1 832-255-0486
Chief Financial Officer
KEYWORDS: United States Luxembourg Europe North America Texas
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