VALARIS INITIATES FINANCING FOR THE ACQUISITION OF VALARIS DS-13 AND DS-14
Valaris and its wholly-owned subsidiary, Valaris Finance Company LLC announced the pricing of their private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended of $400 million in aggregate principal amount of additional 8.375% Senior Secured Second Lien Notes due 2030. The Offering was upsized to $400 million in aggregate principal amount of Additional Notes from the original offering size of $350 million in aggregate principal amount of Additional Notes. The Additional Notes mature on April 30, 2030 and will be issued at 100.75% of par. The Offering is expected to close on August 21, 2023, subject to customary closing conditions.
Valaris intends to use the net proceeds of the Offering to finance the aggregate purchase price of approximately $337 million (assuming a December 31, 2023 delivery date) for the drillships VALARIS DS-13 and VALARIS DS-14, which Valaris intends to exercise its right to take delivery of on or prior to December 31, 2023, and for general corporate purposes. If Valaris does not elect to exercise its right for either or both drillships, Valaris intends to use the net proceeds of the Offering for general corporate purposes.
Valaris DS-13 and Valaris DS-14 built by Daewoo in South Korea are of the DSME 12000 design