Pacific Drilling extends bid to amend 7¼% notes due 2017 by one day

By Susanna Moon

Chicago, Oct. 5 – Pacific Drilling SA said indirect wholly owned subsidiary Pacific Drilling V Ltd. amended the consent solicitation for its 7¼% senior secured notes due 2017 and extended it by a day.

The consent payment for holders who give consents could be an amount of up to $22 million, if the solicitation is completed, according to a company announcement.

The solicitation will now continue for another day until 5 p.m. ET on Oct. 5.

Holders had submitted consents for 30% of the notes as of 5 p.m. ET on Oct. 4, the previous expiration.

As announced Sept. 22, Pacific Drilling is asking for holder approval to amend a covenant in the notes indenture to allow the company or some of its subsidiaries to incur debt based on the number of vessels owned by the company and its subsidiaries, to align the provision with that of the company’s 5 3/8% senior secured notes due 2020.

The proposed amendment would allow the company to incur more debt that is secured on assets other than the collateral securing the notes or, specifically, to draw more debt under its revolving credit facility due June 2018, which currently is limited by the secured debt incurrence covenant.

To amend the notes, the company must secure the consents for at least a majority of the notes, not counting those owned by the company or its affiliates.

Global Bondholder Services Corp. (866 470-3800 or 212 430-3774) is the information and tabulation agent. Seaport Global Securities LLC (212 616-7748) is the solicitation agent.

Pacific Drilling is an ultra-deepwater drilling contractor with corporate offices in Houston and other offices in Brazil, Luxembourg, Nigeria, Singapore and South Korea.

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