Service & Supply | Finance & Investing | Oilfield Services | Capital Markets
Paragon Offshore to Repurchase $60.24MM in Senior Notes
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Paragon Offshore plc has repurchased and cancelled an aggregate principal amount of $60.24 million of its senior unsecured notes at an aggregate cost of $51.64 million including accrued interest.
The repurchases consisted of $27.25 million of its 6.75 percent senior notes due 2022 and $32.99 million of its 7.25 percent senior notes due 2024. Paragon repurchased the senior notes at an average purchase price of 85.7 percent of face value including accrued interest. As a result of the repurchases, Paragon expects to recognize a gain on debt retirement, net of the write-off of issuance costs, of approximately $8.4 million, of which approximately $6.9 million will be recorded in the third quarter 2014 with the remainder to be recorded in the fourth quarter 2014. The repurchases were made using available cash.
Paragon's President and Chief Executive Officer, Randall D. Stilley, commented: "As part of our recent review of alternatives to allocate capital, our board of directors authorized us to spend up to $100 million to repurchase our bonds in the open market. These repurchases are positive steps that increase shareholder value by strengthening our balance sheet and reducing Paragon's annual cash expenses. Moving forward, we remain committed to allocating capital for the benefit of all shareholders and as part of our strategy, we will continue to evaluate additional debt reduction opportunities."