Vantage Drilling International Proposes to Offer $300 Million in Aggregate Principal Amount of Senior Secured First Lien Notes Due 2023 in a Private Placement
November 14, 2018 at 03:10 pm EST
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Vantage Drilling International announced that it proposes to offer $300 million in aggregate principal amount of senior secured first lien notes due 2023 in a private placement. The company plans to use the proceeds of this offering to repay all of its obligations under, and to terminate, its existing first lien credit agreement, to redeem all of its outstanding 10% senior secured second lien notes due 2020, to fund the remaining amounts to be paid by it in connection with the purchase of a new jack-up rig (assuming such transaction is successfully consummated), and to pay fees and expenses related to the foregoing and to the offering of the notes. Any remaining portion of proceeds of the offering will be used for general corporate purposes. The notes will be guaranteed on a joint and several basis by the company’s direct and indirect subsidiaries and will be secured by a first priority lien on substantially all of the assets of the company and its subsidiaries, in each case subject to certain exceptions. The notes proposed to be offered will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes will be offered only to “qualified institutional buyers” under Rule 144A of the Securities Act or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act.
Vantage Drilling International is an international offshore drilling company. The Company is focused on operating a fleet of drilling units. Its principal business is to contract drilling units, related equipment and work crews, primarily on a dayrate basis, to drill oil and gas wells for its customers. Through its fleet of drilling units, it provides offshore contract drilling services to national and independent oil and gas companies, focused on international markets. In addition, it provides operational and marketing services for operating and stacked rigs, construction supervision services for rigs that are under construction, and preservation management services for rigs that are stacked. The Company has two segments. Drilling Services segment includes activities related to owned jackup rigs and drillships. Managed Services segment consists of activities related to rigs owned by third parties that it manages, supports, or operates through bareboat charters.
Vantage Drilling International Proposes to Offer $300 Million in Aggregate Principal Amount of Senior Secured First Lien Notes Due 2023 in a Private Placement