Daily News: June 4, 2013

Citigroup, Others Arrange Pacific Drilling Facilities

Pacific Drilling announced the closing of three financing transactions totaling $2 billion. The transactions included a $750 million senior secured term loan with 2018 maturity, a $500 million senior secured revolving credit facility also maturing in 2018 and an offering of $750 million in 5.375% senior secured notes due 2020.

Citigroup, Goldman Sachs Lending Partners LLC/Goldman Sachs Bank USA, Deutsche Bank Securities and Barclays acted as joint lead arrangers and bookrunning managers for the senior secured term loan and the revolving credit facility.

Net proceeds from the offering of the senior secured notes and the term loan were used to fully repay all $1.35 billion outstanding on its Project Facilities Agreement. The facilities will be used for general corporate purposes, primarily the initial construction payments for the Pacific Zonda.

The $500 million revolver can provide up to $200 million in future incremental funding intended to support our working capital needs as our company continues to expand. The balance of $300 million is available for letters of credit that backstop the company’s customs bonds for the temporary importation of its drillships into the operating location, including already existing customs bonds totaling $204 million for the Pacific Bora and the Pacific Scirocco.

To read the entire news release, click here.