Aker Drilling aims to secure up to US$600 million in equity through an initial public offering (IPO) in February. The company has applied for listing on the Oslo Stock Exchange, said president and CEO Øyvind Eriksen of Aker.
The planned subscription period is expected to commence on February 7, 2011, and close on February 18, 2011. Aker will retain a strong position, but will reduce its ownership to less than 50 per cent, in order to enable the new Aker Drilling to develop as an independent company with a liquid trade of the shares.
Meanwhile, a letter of intent (LOI) has been signed with Daewoo Shipbuilding & Marine Engineering (DSME) for the delivery of two advanced ultra-deepwater drillships by the end of 2013, and the option for delivery of two additional drillships. The price per ship, including spare parts, drilling equipment, construction follow up, and activities up to "ready-to-drill" is estimated at US$600 million.
In connection with the financing of the new drillships and the IPO, Aker Drilling will carry out refinancing of the company. Aker Drilling is currently in discussions with a bank syndicate in order to increase the drilling company's bank loans from US$605 million to US$900 million. The increase of US$295 million will be used to repay debt to Aker.
Furthermore, the company aims to replace its three-year NOK1.5 billion (US$260 million) bond loan with a longer-term bond loan at the same value, but without the guarantee from Aker. The refinancing is in accordance with previously announced plans to further develop Aker's role as equity investor and make Aker Drilling an independent company without any other financial commitments to its largest owner.