Moody's: Diamond Offshore unchanged

Moody's Investors Service said it commented that Diamond Offshore Drilling, Inc.'s proposed offering of $500 million of senior unsecured notes will not affect its existing Baa1 senior unsecured ratings and stable outlook.

The proceeds from the debt offering will replenish cash balances that were used to fund Diamond's recently announced purchase of the new-build, 7,500-foot, dynamically positioned semi-submersible offshore drilling unit PetroRig II, the agency said.

The acquisition cost is about $490 million, exclusive of initial mobilization costs, final commissioning, drillstring and necessary spares, according to Moody's, which added that pro forma for the debt offering, debt/EBITDA and debt/capitalization were around 0.7x and 28% at June 30. This compares to 0.25x and 12% at Dec. 31.

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