Transaction Summary Transaction details Equity Issue of approximately USD 250 million (NOK 1,525 million) Perestroika subscription condition: through a private placement of new shares Perestroika AS will be allocated shares securing…
Tentative key dates Equity Issue Convertible Bond Issue Call for EGM: 26 November Call for EGM: 26 November Allocation: 27 November Allocation: 27 November EGM: 18 December EGM: 18 December Settlement: 23 December Settlement: 23…
Integrated solution Creating a focused and robust Songa Offshore USD 250m equity, USD 150m convertible bond USD 400m in USD 250m equity fully guaranteed by Perestroika new capital and certain other shareholders Subsequent repair…
Sources & Uses Fully financed, with moderate assumptions on Sources USDm take-out financing for Cat-D 3&41) Proceeds from equity raise 250 Mobilization fee of USD 40m per rig received upon Proceeds from convertible bond issue 150…
Improved liquidity, reduced cost of capital, significantly reduced financial risk Current maturity profile Maturity profile after refinancing 600 Cat-D Bond 2016 600 Convertible bond Bond 2016** USDm USDm deliveries Bond 2015…
Restructured bank and bond facilities, proposed amendments Existing bonds - Summary Existing bank facility - Summary Waiver for relevant covenants from and including Q4/13: Quarterly amortizations reduced with 50% Leverage ratio: To…
Cat-D Amendments Improved terms 5% average rate uplift for the Cat-D units during the fixed contract period Profile Rate uplift Declining rate profile from 9.0% the first full year to 0.0% in year 8 If Statoil choose to exercise…
Investment highlights Resolved funding gap for delivery of the Cat-D rigs Funding gap Concessions from bondholders Funding gap resolved and amendments to bank syndicate resolved Debt financing of the Cat-D 3&4 outstanding, strong…
Investment proposition
New management team and chairman Bjrnar Iversen - CEO Before joining the company in June 2013, Mr. Iversen was a member of the executive leadership team at Odfjell Drilling AS. During his 17 year's tenure at Odfjell Drilling, he has…
Fleet overview Songa Dee Cat-D Encourage Semisubmersible HE semisubmersible Norwegian North Sea Fleet Built: Delivery Q2 2015 Built: 1984 Water depth: 1,640 feet Modified: 2004 / 2012 Moored / DP Water depth: 1,800 feet Next main…
Building the largest semi submersible drilling contractor on the Norwegian Continental Shelf For sale Semis per Operator on the NCS, projected 2015 8 7 6 5 4 3 2 1 0 * Source: Managers *Polar Pioner leaving the…
Cat-D Newbuild Project - Schedule Good project progress with construction progress: Construction Progress Equinox Endurance Encourage Enabler August 1 70.1% 65.8% 19.1% 8.0% October 31 75.7% 72.8% 38.3% 12.1% Songa estimate delays…
Cat-D Newbuild Project Some Cat-D Facts: Cat-Ds constructed according to Statoils specifications reduces delivery risk considerably Mutual understanding that Statoil will accept as much as possible of the rigs before Songa takes…
Contract Status 2013 2014 2015 2016 2017 2018 Unit Customer Current Option Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Day rate Day rate Norwegian Continental Shelf Rate end of firm Songa Dee Statoil 353…
Superior backlog Statoils largest drilling operator Backlog per rig (USDm) Statoil rig years contracted in Norway (floaters) 900 836 800 700 600 3 31 525 4 500 4 Songa 425 411 5 Offshore 400 363 342 40; 50 % 328 5 300 231 184…
Statoil World class counterparty 67% owned by the Norwegian state World class corporate governance, Minimal political risk HSE and sustainability Credit ratings: Aa2 (Moodys), Listed on OSE and NYSE (secondary) AA- (S&P) 99% of…
Financing and amendments
Amendments to existing bonds Committed support from 2/3 majority in existing bonds Waiver for relevant covenants from and including Q4/13: Leverage ratio: To be waived until Q4/14, thereafter reinstated at 4.75x from and including Q1/15…
Amendments to existing bank fleet facility Quarterly amortizations reduced with 50% Implies new amortizations of USD 14m Mandatory pre-payment if sale of vessels reduced from 120% of the mortgage amount to 50% of the mortgage…
Sources & Uses, Pro-forma Balance Sheet Balance Sheet Q3-13 Q3-13 Sources USDm USDm reported Delta pro-forma Proceeds from equity raise 250 Non-current assets Proceeds from convertible bond issue 150 Rigs, machinery and equipment 1…
Risk factors
Risk factors (1/4) Investing in the shares (the Shares) or convertible bonds (the Convertible Bonds) issued by the Company (together the Securities) involves inherent risks. Before deciding whether or not to invest in the Securities, a…
Risk factors (3/4) Key personnel for operations and profitability The Groups ability to continue to attract, retain and motivate key personnel, and other senior members of the management team and experienced personnel will have an impact…
Risk factors (4/4) Australian tax The Australian tax law includes general anti-avoidance provisions regarding schemes entered into for the sole or dominant purpose of obtaining a tax benefit. If the Commissioner of Taxation determines…
Appendix Organization Market Financials Company: Placeholder new picture 33
We continue to build a new Songa under the New Songa Vision Vision: Songa Offshore shall be the preferred International Midwater Drilling Contractor with a strong presence in the harsh environment North Atlantic basin Mission:…
Organization - strenghtened further New organisational structure implemented increased focus Jan Rune Steinsland appointed CFO from 4 November 2013 Mark Bessell appointed COO from 21 October 2013 Project and Technical division…
New focused organization structure Norway 36
Market update North Sea semi market very strong in spite of increased supply Forecast rig demand from IHS Petrodata shows rig demand growing from 40 to 47 units by 2014 The increase in Worldwide Semi Source: Fearnley Offshore…
Profit & Loss million 9M 2013 2012 2011 2010 Operating revenue 366 562 507 630 Reimbursables 11 8 5 6 Other revenue 30 15 9 14 Total revenues 408 585 522 650 Rig operating expenses 207 331 284 328 Reimbursables 9 7 5 6 General and…
Balance Sheet million Sept 30 Dec 31 Dec 31 Dec 31 2013 2012 2011 2010 Non-Current Assets Rigs, machinery and equipment 1,335 1,372 1,858 1,181 Newbuilds 561 507 234 - Deferred tax assets 103 103 103 59 Other non-current assets - 10 -…
Balance Sheet million Sept 30 Dec 31 Dec 31 Dec 31 2013 2012 2011 2010 Total shareholders equity 959 947 1,154 1,042 Non-current liabilities Bank loans and other facilities 486 620 773 288 Bond loans 345 373 226 48 Derivative…
Investment highlights Resolved funding gap for delivery of the Cat-D rigs Funding gap Concessions from bondholders Funding gap resolved and amendments to bank syndicate resolved Debt financing of the Cat-D 3&4 outstanding, strong…
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