News Details

Financing Secured

09/09/2010

On September 9 2010, together with a group of European & US commercial banks and Norwegian & Korean export credit agencies, Pacific Drilling arranged a 5-year project facilities agreement for four wholly-owned vessels. This agreement permits borrowing of up to $1.8 billion, allowing Pacific Drilling to finance the construction of four vessels, the Bora, Scirocco, Mistral and Santa Ana. The debt fundings is in addition to previous equity contributions from Pacific Drilling's primary sponsor in excess of $1.3 billion. It is secured by mortgages on the vessels as well as other forms of collateral, which is customary for this type of project financing. The interest rate is based on a variable Libor rate with a fixed margin. Upon funding of each of the four tranches of the financing, the interest rate will be hedged to ensure an all-in fixed interest rate over the term of the financing (5 years).

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