Daily News: October 30, 2014

Citigroup Global, Others Arrange Pacific Drilling Revolver

Pacific Drilling announced that it has signed a revolving credit facility with an aggregate principal amount of up to $500 million.

Citigroup Global Markets, Standard Chartered Bank, DNB Markets and Nordea Bank Finland, London Branch acted as joint lead arrangers. Citigroup Global Markets and Standard Chartered Bank acted as joint bookrunners. Citigroup Global Markets acted as syndication agent.

Prior to delivery of the Pacific Zonda, up to $350 million is available under the $500 million revolving credit facility. The remaining $150 million will become available following the delivery of the Pacific Zonda upon entry into a satisfactory drilling contract.

CFO Paul Reese commented, “The new revolving credit facility, when combined with our existing facilities, addresses our expected financing needs until our 7.25 percent bonds mature at the end of 2017.”

The revolving credit facility has a maturity date of five years after the delivery date of the Pacific Zonda. Borrowings under the revolving credit facility bear interest at LIBOR plus a margin ranging from 1.75% to 2.5% based on the company’s leverage ratio. No amounts were drawn under this revolving credit facility in connection with the closing of the transaction.

Pacific Drilling is a fast-growing company that is committed to becoming the industry’s preferred ultra-deepwater drilling contractor.