Odfjell Drilling today announced the successful completion of its planned refinancing with secured bonds of USD 390 million and bank facilities of USD 497 million, including a revolving credit facility of USD 175 million.

Main objectives of refinancing achieved:

• Prepaid existing bank facilities, removing any significant liabilities until 2028
• Secured additional flexibility for strategic priorities and growth opportunities
• Dividend and shareholder distribution clause amended to allow for distributions
• Significant free cash flow generation by reduced fixed amortisation

Diversified capital structure and increased flexibility:

• Raised USD 390 million by way of a significantly oversubscribed rated bond, secured against the Deepsea Aberdeen and Deepsea Atlantic, maturing in May 2028. The Company and the bonds have been rated by S&P and Moody’s with ratings of B+/BB and B2/B2, respectively
• Amended and extended the USD 197 million Deepsea Nordkapp facility to January 2029 with commercial tranche and export credit agency tranche
• Following significant interest from existing and new commercial banks, secured USD 300 million bank facility on favourable terms on Deepsea Stavanger maturing in February 2028
• USD 125 million term loan tranche
• USD 175 million revolving credit facility, an increase of USD 15 million from the announcement made on 8 May 2023

Frode Skage Syslak, Chief Financial Officer of Odfjell Drilling AS commented:
“After a period of focus and hard work on the refinancing, we are very pleased to be able to announce its completion. The interest and support Odfjell Drilling has received from both new and existing stakeholders throughout has been extraordinary and reflects the market’s recognition of the Company’s focus on the highest standards of operational capability, capital discipline and contracting strategy.

The terms secured for the refinancing are favourable and facilitate the delivery of long-term, dependable capital generation from which the Company can drive stakeholder value.

Capital return to shareholders is a near-term focus and an updated shareholder distribution policy will be communicated together with the Q2 2023 results.”

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