Offshore drilling contractor Valaris Ltd. and its wholly-owned subsidiary Valaris Finance Co. LLC intend to offer those eligible in a private placement an additional $350 million in aggregate principal amount 8.375% senior secured second lien notes due 2030, according to an Aug. 7 press release.
The net proceeds of this offering will be used to finance the aggregate purchase price of approximately $337 million for the VALARIS DS-13 and VALARIS DS-14 drillships if the company chooses to exercise its right to take delivery on or prior to Dec. 31, the release said. Any proceeds not used to finance the drillships is expected to be used on general corporate purposes.
These notes will be considered a further issuance of a series of existing 8.735% senior secured second lien notes due 2030 in the aggregate principal amount of $700 million. These existing notes were issued on April 19.
Because the securities are not registered under the Securities Act of 1933, they may not be offered or sold in the U.S. without appropriate exemption. Valaris intends to only offer and sell the securities to qualified buyers pursuant to Rule 144A under the Securities Act and to those outside the U.S.
Valaris is an offshore drilling services company headquartered in Houston, Texas.
Recommended Reading
Mexico Presidential Hopeful Sheinbaum Emphasizes Energy Sovereignty
2024-04-24 - Claudia Sheinbaum, vying to becoming Mexico’s next president this summer, says she isn’t in favor of an absolute privatization of the energy sector but she isn’t against private investments either.
Pemex to Remain Fiscally Challenged for Mexico’s Next President
2024-04-16 - S&P Global Ratings said Pemex will remain a fiscal challenge for the country’s next president, adding that continued cautious macroeconomic management was key in its ratings on both Mexico and Pemex.
BWX Technologies Awarded $45B Contract to Manage Radioactive Cleanup
2024-03-05 - The U.S. Department of Energy’s Office of Environmental Management awarded nuclear technologies company BWX Technologies Inc. a contract worth up to $45 billion for environmental management at the Hanford Site.
Laredo Oil Settles Lawsuit with A&S Minerals, Erehwon
2024-03-12 - Laredo Oil said a confidential settlement agreement resolves a title dispute with Erehwon Oil & Gas LLC and A&S Minerals Development Co. LLC regarding mineral rights in Valley County, Montana.
DOE Considers Technip, LanzaTech For $200MM ‘Breakthrough’ Technology Award
2024-03-25 - The U.S. Department of Energy funding will be used to develop technology that turns CO2 into sustainable ethylene.