Paragon Offshore buys back $60.24 million of its notes at a discount

New York, Oct. 7 – Paragon Offshore plc said it repurchased $60.24 million of its senior notes for a total cost of $51.64 million, including accrued interest.

The company bought $27.25 million of its 6¾% senior notes due 2022 and $32.99 million of its 7¼% senior notes due 2024.

On average Paragon paid a price of 85.7, including accrued interest.

Funding for the buybacks came from available cash.

“As part of our recent review of alternatives to allocate capital, our board of directors authorized us to spend up to $100 million to repurchase our bonds in the open market,” said Paragon president and chief executive officer Randall Stilley in a news release.

“These repurchases are positive steps that increase shareholder value by strengthening our balance sheet and reducing Paragon’s annual cash expenses. Moving forward, we remain committed to allocating capital for the benefit of all shareholders and as part of our strategy, we will continue to evaluate additional debt reduction opportunities.”

Paragon is a Houston-based provider of offshore drilling rigs.

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