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Pacific Drilling Announces Closing of $500 Million Revolving Credit Facility

Business Wire
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Pacific Drilling S.A. (NYSE:PACD) announced today that it has signed a revolving credit facility with an aggregate principal amount of up to $500 million.

Prior to delivery of the Pacific Zonda, up to $350 million is available under the $500 million revolving credit facility. The remaining $150 million will become available following the delivery of the Pacific Zonda upon entry into a satisfactory drilling contract.

CFO Paul Reese commented, “The new revolving credit facility, when combined with our existing facilities, addresses our expected financing needs until our 7.25 percent bonds mature at the end of 2017.”

The revolving credit facility has a maturity date of five years after the delivery date of the Pacific Zonda. Borrowings under the revolving credit facility bear interest at LIBOR plus a margin ranging from 1.75 percent to 2.5 percent based on the company’s leverage ratio. No amounts were drawn under this revolving credit facility in connection with the closing of the transaction.

Citigroup Global Markets Inc., Standard Chartered Bank, DNB Markets, Inc. and Nordea Bank Finland Plc, London Branch acted as Joint Lead Arrangers, Citigroup Global Markets Inc. and Standard Chartered Bank acted as Joint Bookrunners and Citigroup Global Markets Inc. acted as Syndication Agent.

Legal counsel for Pacific Drilling was Vinson & Elkins L.L.P., and legal counsel for the lenders was Baker Botts L.L.P.

About Pacific Drilling

With its best-in-class drillships and highly experienced team, Pacific Drilling is a fast-growing company that is committed to becoming the industry’s preferred ultra-deepwater drilling contractor. Pacific Drilling’s fleet of eight high-specification drillships will represent one of the youngest and most technologically advanced fleets in the world. The company currently operates six drillships under customer contract and has two drillships under construction at Samsung Heavy Industries. For more information about Pacific Drilling, including our current Fleet Status, please visit our website at www.pacificdrilling.com.

Forward-Looking Statements

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain risks and uncertainties, including, among others, Pacific Drilling’s ability to draw on the revolving credit facility, which is subject to the satisfaction of certain customary financial covenants and other conditions. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. Factors that can affect future results are discussed in Pacific Drilling’s filings with the U.S. Securities and Exchange Commission. Pacific Drilling undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

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