(Oslo, 22 June 2023) Briggs Drilling Holdings Limited AS ("Briggs Drilling Holdings Limited") (OSE: DDRIL) announces the acquisition of two semi-submersible rigs, the Paul B. Loyd Jr. and the Transocean Leader for a total of USD 61.5 million (plus an additional USD 3 million) (the "Transaction").
Briggs Drilling Holdings Limited is contemplating a private placement of approx. USD 60 million to finance the Transaction (the "Private Placement").
“We are excited about this acquisition, which not only expands our fleet but also enhances our earning visibility," says Bjørnar Iversen, CEO of Briggs Drilling Holdings Limited.
“This transaction signifies an important stride for Briggs Drilling Holdings Limited as we showcase our operational platform's capacity to incorporate additional assets and generate immediate, robust cash flows for our shareholders. The addition of these efficient rigs allows us to further consolidate the midwater rig segment in a tightening market, characterised by historically low supply and surging dayrates across offshore basins.," Iversen elaborates.
Under the agreement, Briggs Drilling Holdings Limited will acquire the Paul B. Loyd Jr. and Transocean Leader from Transocean. Currently, the Paul B. Loyd Jr. is under contract with Harbour Energy in the UK with the firm period slated to last until September 2024, and the Transocean Leader is stacked in the UK.
Briggs Drilling Holdings Limited is contemplating a private placement of new shares raising gross proceeds of the NOK equivalent of USD 60 million to finance the Transaction (the "Private Placement"). The Private Placement is supported by Briggs Drilling Holdings Limited's two largest shareholders, Strategic Value Partners LLC and S.D. Standard ETC Plc, who have pre-committed to subscribe in the Private Placement for USD 12.5 million and USD 7.5 million, respectively. Further, Strategic Value Partners LLC and S.D. Standard ETC Plc have committed to support Briggs Drilling Holdings Limited through a USD 15 million revolving facility. In addition, the CEO, COO and CFO, and other senior members of the management group at Briggs Drilling Holdings Limited have committed to participate in the Private Placement.
The agreement is subject to certain customary closing conditions which must be satisfied before the Transaction can be completed.
More information on the contemplated Private Placement can be found in a separate announcement from Briggs Drilling Holdings Limited announced on 22 June 2023.
The agreement with Transocean is conditioned upon approval to novate Paul B. Loyd Jr. existing UK HSE safety case to Briggs Drilling Holdings Limited and customary closing conditions and is expected to be closed during the second half of 2023.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 the Norwegian Securities Trading Act.
This stock exchange announcement was published by Ingolf Gillesdal, VP Corporate Finance and Investor Relations Briggs Drilling Holdings Limited AS on 22 June 2023 at the time set out in this notice on behalf of the Company.