Global Rig seeks waiver, amendments in 9% callable bonds due 2019

By Wendy Van Sickle

Columbus, Ohio, Sept. 23 – Global Rig Co. AS is seeking a waiver and amendments to its 9% senior callable bonds due 2019, according to a notice from bond trustee Nordic Trust ASA.

The proposed changes relate to Global Rig’s plan to sell and the rights and entitlements to its nine land-based oil and gas rigs in operation in Louisiana, New Mexico, Oklahoma and Texas to its wholly owned subsidiary NorAm Drilling Co., which it said will give the company and its subsidiaries a stronger U.S. presence.

The seller’s credit of $110 million exceeds the stated intragroup loan threshold, which will require an amendment to the bond agreement.

A meeting will be held at 7 a.m. ET on Oct. 7.

Bondholders are being asked to:

• Approve and waive provisions in relation to the transfer; and

• Instruct the bond trustee to take steps, including negotiation, documenting and entering legal agreements, granting amendments and waivers and giving instructions and consents on behalf of the bondholders as necessary in connection with the transfer.

To pass, the proposed changes must be approved by bondholders representing more than two-thirds of bonds represented at the meeting. To establish a quorum, at least half the voting bonds must be represented at the meeting.

Bondholders may authorize Nordic Trust ASA (+47 22 87 94 10 or mail@nordictrustee.no) to vote on their behalves.

Global Rig is an onshore rig owner and lessor based in Oslo.

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