Ocean Rig Norway prices tender offer for 8 3/8% notes, gets needed consents

By Angela McDaniels

Tacoma, Wash., April 2 - Ocean Rig ASA said its wholly owned subsidiary, Ocean Rig Norway AS, determined the payout noteholders will receive in the tender offer for its $150 million of 8 3/8% senior secured second-lien notes due 2013.

The payout will be $1,113.92 for each $1,000 principal amount of notes. This includes a $30.00 consent payment for notes tendered by the consent deadline, 5 p.m. ET on April 1.

Holders will also receive accrued interest to the settlement date, which is expected to be April 17.

Ocean Rig Norway had received tenders and consents for 100% of the notes as of the consent deadline, according to a company news release. The company said it will enter into a supplemental indenture giving effect to the proposed amendments, and those amendments will become operative on the settlement date.

The tender offer began on March 18 and will expire at midnight ET on April 15.

The payout equals the present value on the settlement date of all future cash flows on the notes - assuming the notes would be repaid at $1,041.88 on July 1, 2009, the notes' redemption date - determined using the bid-side price for the 4 7/8% U.S. Treasury note due June 30, 2009 at 2 p.m. ET on April 1 plus 50 basis points and minus accrued interest up to but excluding the settlement date.

The tender offer is subject to, among other conditions, a financing condition that Ocean Rig said it plans to meet by entering into a $1 billion credit facility with DnB NOR.

Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-5384) is the dealer manager and solicitation agent, and Global Bondholder Services Corp. (212 430-3774 for banks and brokers or toll-free at 866 470-4500) is the information agent and depositary.

Ocean Rig is an oil and gas drilling contractor with a focus on ultra deep-water and harsh-environment areas. The company is based in Stavanger, Norway.

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