SDLP - Amendment to Certain Credit Facilities
London, United Kingdom, April 29, 2016 - Seadrill Partners LLC ("the Company") announces today that it has consented to the agreement reached between Seadrill Limited and its banking group to amend certain covenants related to the following secured credit facilities where both parties are guarantors:
- US$1.45 billion facility relating to the West Vela
- US$420 million facility relating to the West Polaris
- US$440 million facility relating to the T-15 & T-16
These three facilities relate to rigs purchased by the Company from Seadrill Limited which contain identical covenants to those in other Seadrill Limited facilities.
The amendments form part of a package of measures agreed between Seadrill Limited, our largest shareholder and former parent, and its banks as the first phase of a broader plan to refinance and recapitalize its business. Please see Seadrill Limited's Annual Report on Form 20-F filed with the U.S SEC on April 28th 2016 for additional details.
The financial covenant amendments extend to 30 June 2017 and relate to the following:
- A reset of the leverage covenant.
- A revised definition of the Equity Ratio to exclude the impact of any change to the market value of our rigs.
- A suspension of the provision that allows lenders to receive a prepayment if rig values decline below a minimum value relative to the loan balance outstanding.
For additional detail on the terms of the agreement, please refer to our Annual Report on Form 20-F filed with the U.S. SEC on April 28th 2016.
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. In particular, statements regarding projected changes in the Company's cash distributions, the Company's anticipated growth strategies and its ability to re-contract its drilling rigs are considered forward looking statements. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to the performance of the drilling rigs in the Company's fleet; delay in payment or disputes with customers; fluctuations in the international price of oil; changes in governmental regulations that affect the Company or the operations of the Company's fleet; increased competition in the offshore drilling industry; hire rates and factors affecting supply and demand for drilling rigs; the financial condition of the Company's existing or future customers; and general economic, political and business conditions globally. Consequently, no forward looking statement can be guaranteed. When considering these forward looking statements, you should keep in mind the risks described from time to time in the Company's filings with the SEC, including its Annual Report on Form 20-F (File No. 001-35704).
The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.