Vantage Drilling International's New Notes to Strengthen Liquidity
Vantage Drilling International's Strategic Note Issuance
Vantage Drilling International Ltd. is excited to announce a strategic move aimed at enhancing its financial stability. The company has entered into a purchase agreement involving the issuance of $50 million in Senior Secured First Lien Notes, featuring an attractive interest rate of 9.500%. This issuance is made at a 97% issue price and is part of a comprehensive financial strategy designed to maintain a robust balance sheet.
Purpose Behind the New Notes Issuance
The net proceeds from this note issuance will primarily be utilized to redeem the outstanding 9.500% Senior Secured First Lien Notes that are due in 2028. This redemption process, amounting to $184,855,000, will occur at par, including any accrued and unpaid interest, ensuring that the company can move forward without the burden of these existing notes. This strategic decision follows the successful completion of a Vessel Sale, further solidifying Vantage's commitment to optimizing its financial structure.
Timeline of the Redemption and New Issuance
The timeline for this financial initiative is crucial. The redemption of the current senior notes is set to complete by the end of November, while the new note issuance is projected to take place in early December. This efficient approach allows Vantage Drilling International Ltd. to maintain liquidity while preparing for future ventures.
Strengthening Future Operations
The issuance of these new secured notes aligns with Vantage’s broader strategy to bolster its liquidity and prepare for additional operational enhancements. This includes the anticipated sale of the Tungsten Explorer, which is set to occur in a joint venture with TotalEnergies in the coming years. By ensuring sufficient liquidity, Vantage is well-positioned to capitalize on opportunities within the global drilling industry.
Long-term Growth and Capital Optimization
This transaction is part of Vantage's ongoing efforts to refine its capital structure. Optimizing capital not only ensures financial resilience but also supports Vantage’s long-term growth objectives. The company aims to remain agile in the dynamic drilling market, making informed decisions that enhance its competitive stance.
Contact Information
For more information on Vantage Drilling International Ltd. and their financial strategies, feel free to reach out to:
Rafael Blattner
Chief Financial Officer
Vantage Drilling International Ltd.
+971 4 449 34 28
Frequently Asked Questions
What is the purpose of the new notes issued by Vantage Drilling?
The new notes aim to enhance Vantage Drilling’s liquidity and enable the redemption of existing senior notes, ensuring a stronger balance sheet.
How much is Vantage Drilling planning to raise through the new issuance?
The company plans to raise $50 million through the issuance of the new Senior Secured First Lien Notes.
When is the redemption of the existing notes expected to occur?
The redemption of the existing senior notes is expected to be completed by the end of November.
What are the anticipated benefits of this financial strategy?
This strategy will optimize capital structure, improve liquidity, and potentially pave the way for long-term growth in the drilling industry.
Who can be contacted for more information regarding Vantage Drilling?
For inquiries, Rafael Blattner, the Chief Financial Officer, is the point of contact at +971 4 449 34 28.
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