Songa Offshore secures funds for two Cat D drilling rigs

Business & Finance

Songa Offshore SE has announced that the documentation for the USD 1.1 billion senior secured credit facility for the financing of the last two Cat D drilling rigs, Songa Encourage and Songa Enabler, has been completed and the loan agreements have been signed by all parties.

The financing consists of a revolving pre-delivery financing of USD 90 million per rig and a post-delivery financing of USD 550 million per rig.

The pre-delivery loan will be priced at LIBOR plus 3.00%, the post-delivery loan will be priced at LIBOR plus 2.50% and was substantially oversubscribed.

The post-delivery financing has a tenor of 5 year and an approximately 11.5 year amortization profile.

Cat D drilling rigs

The cat D mid-water semi-submersible rig concept is designed for efficient year around drilling, completion, testing and intervention operations in harsh environment. This rig type is equipped with ATA, DP class 2&3 systems in 100 to 500 meters water depth. Furthermore, the cat D unit is a flexible rig design prepared for future deep water operations and arctic operations which can be implemented by minor post upgrades, Songa Offshore says.

Delivery from DSME for Songa Encourage is scheduled for Q3 2015 and Songa Enabler for Q4 2015.

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