NIBC helps finance drilling rigs for Songa OffshoreCorporate News -
Songa Offshore is an International midwater drilling contractor with a strong presence in the harsh environment of the North Atlantic basin. The company’s fleet of rigs is growing and it is set to become the leading contractor in Norway, where it will soon have a fleet of seven midwater semi-submersibles drilling rigs. Songa is the main contractor for the Norwegian state oil company Statoil.
Songa was founded in early 2005 and was listed on the Oslo stock exchange in 2006. The company has around 1,400 employees in Norway and recorded revenues of over USD 415 million in the first nine months of 2014.
Songa Offshore is Statoil's largest drilling services provider and is in the process of adding four state-of-the-art semi-submersible drilling units to its fleet. The new rigs are currently under construction at Daewoo in South Korea and all four are tailor-made for Statoil contracts and built to comply with the NCS (Norwegian Continental Shelf) regulatory environment. Songa had already secured financing for the first two rigs and in the first half of 2014 approached NIBC and other banks to secure the financing for the third and fourth rigs.
The addition of the four new rigs – all designed in close cooperation with Statoil itself – will help Songa secure Statoil as a long term client. Statoil has signed contracts related to the use of the rigs for an initial period of eight years, with options on four additional three-year periods. The rigs are due for delivery in the third and fourth quarters of 2015
In June 2014, Songa Offshore mandated NIBC, along with ABN AMRO, ING and Swedbank, as book running mandated lead arranger and underwriter for the financing of the second two semi-submersible drilling units. After an intense period of book-running, syndication was closed with a substantial oversubscription.
The USD 1.1 billion facility is split into a USD 840 million commercial tranche and a USD 260 million export credit tranche. During syndication, seven commercial banks joined the facility in addition to the four underwriters and the Norwegian Export Credit Agency.