Drillships ups term B to $1.3 billion, flexes to Libor plus 450 bps

By Sara Rosenberg

New York, July 17 – Drillships Ocean Ventures Inc. (Ocean Rig) lifted the size of its senior secured term loan B (B2/B+) to $1.3 billion from $800 million and reduced pricing to Libor plus 450 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99, call protection of 103 in year one, 102 in year two and 101 in year three, and a total leverage ratio of 5.5 times stepping down to 5 times.

Recommitments were due at 3 p.m. ET on Thursday and allocations are expected on Friday, the source continued.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Proceeds will be used to help refinance a $1.35 billion senior secured term loan.

With the term loan B upsizing, plans for a $500 million senior secured notes offering were cancelled, the source added.

Based in Nicosia, Cyprus, Drillships is a subsidiary of Ocean Rig UDW Inc., a Greece-based international offshore drilling contractor.

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