Moody's rates Floatel loan B2

Moody's Investors Service sad it assigned a B2 corporate family rating and a B2-PD probability of default rating to Floatel International Ltd.

Concurrently, the agency assigned a provisional B2 rating to the company's proposed $650 million senior secured term loan B due 2020 borrowed by Floatel and U.S. Finco.

The outlook is stable.

Proceeds will be used in combination with a committed $270 million new vessel facility to refinance the existing debt amounting $584 million and finance $241 million of remaining capex for the fourth rig, Floatel Endurance, due for delivery in the first quarter of 2015.

Floatel's debt also consists of an undrawn first-out $100 million revolving credit facility maturing in 2019. Although the revolver ranks super senior and is secured on all five vessels, its relatively small size results in the senior secured term loan B being rated provisional B2 - at the same level as the corporate family rating.

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