Norwegian oilfield service firm,
) announced that has refinanced its three high specification
ultra-deepwater rigs − West Pegasus, West Gemini, and West Orion.
Seventeen banks committed the company a $1.35 billion credit
facility, which has a 10-year amortization profile and five-year
SeaDrill Limited said the credit facility was initially $900.0
million and was collateralized by two ultra-deepwater rigs. Later
on, the loan was upsized to $1.35 billion. The increased facility
is now backed by three rigs as one more unit is included in the
collateral group. The company added that the new facility is
expected to be priced at Libor plus 2.0%. Moreover, SeaDrill
Limited will have $350.0 million additional cash owing to the
upsizing of the previous credit facility.
SeaDrill Limited is also expected to refinance one ultra-deepwater
and four jack-up rigs by 2015. Again, by 2016, the company will
likely refinance one ultra-deepwater and four jack-up units.
Management revealed that the company has diversified its source of
financing which helps to significantly lower its risk of
Hamilton, Bermuda-based SeaDrill Limited involved mainly in
worldwide offshore drilling services. Currently, the company is
operating a fleet of 69 rigs which includes jack-ups, drillships,
tender units and semi-submersibles rigs.
SeaDrill Limited currently carries a Zacks Rank #3 (Hold), which
implies that it is expected to perform in line with the broader
U.S. market over the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and gas
drilling sector like
Nabors Industries Ltd.
North Atlantic Drilling Limited
Ocean Rig UDW Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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