Moody's rates Frontier Drilling loan B3

Moody's Investors Service said it assigned a B3 to Frontier Drilling's proposed $315 million first-lien senior secured credit facilities and assigned a B3 corporate family rating.

Proceeds from the facilities will be used to fund current and planned upgrading projects on two drillships, the Frontier Deepwater and the Frontier Discoverer.

The outlook is stable.

Moody's said the ratings are restrained by Frontier's considerably high leverage that will remain high at least over the next 18 months given that the bulk of its cashflows will not be realized until completion of the two vessel upgrades while the debt will be drawn prior to the commencement of those cashflows.

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