Seadrill Partners LLC - a subsidiary set up by Norwegian
oilfield service firm
) - launched an initial public offering (IPO) of its common units.
As per the registration filed with the Securities and Exchange
Commission in the last week of September, the offered units have
been listed on the New York Stock Exchange under the ticker name
Seadrill Partners has offered 8,750,000 units of common shares with
the aim to raise approximately $200 million. The price range of the
shares has been set between $20 to $22 each. The company also plans
to offer the underwriters a 30-day over-allotment option, whereby
they will be able to buy additional units of up to 1,312,500.
Seadrill Partners aims to utilize the proceeds from the offering to
buy stakes in Seadrill Operating LP and Seadrill Capricorn Holdings
LLC from the parent company.
Following the completion of the offering, Seadrill Limited will
control 78.8% limited liability interest in Seadrill Partners -
that will own, operate and purchase offshore drilling rigs via
The start-up fleet of Seadrill Partners will comprise two
semi-submersible rigs (West Capricorn and West Aquarius), one
drillship (West Capella) and one tender rig (West Vencedor). The
company's drillships are contracted on a long-term basis by oil
Exxon Mobil Corp.
Based in Hamilton, Bermuda, Seadrill Limited renders offshore
drilling services, which include drilling, completion and
maintenance of offshore wells; production drilling and well
maintenance; and well services to customers worldwide. As of
June 30, 2012, the company's fleet included 43 offshore drilling
units and 18 other units under construction.
Seadrill Limited retains a Zacks #3 Rank, which is equivalent to a
Hold rating for a period of one to three months.
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