Seadrill Partners Agrees to acquire the tender rig T-16 for $200M; sees accretion, may raise distribution
- Entered into an agreement to acquire the company that owns the tender rig T-16 from Seadrill Limited ("Seadrill") for a total purchase price of US$200M, less approximately US$93M of debt outstanding under the credit facility secured by the T-16. Seadrill Partners will acquire the company that owns the T-16 in exchange for approximately US$107M in unregistered common units that Seadrill Partners will issue to Seadrill Limited.
- The number of common units to be issued to Seadrill Limited will be 3,310,622, at a price of US$32.29 which is based on the ten-day volume weighted average closing price ending on October 10, 2013 for Seadrill Partners' common units. The transaction is expected to close within October 2013
- Acquisition will be accretive to unitholders and has recommended that, upon completion of the acquisition, the Board of Directors of Seadrill Partners consider an increase in the quarterly cash distribution of between US$0.025 and US$0.03, an approximate 7% increase (annualized increase of between US$0.10 and US$0.12 from the current annualized distribution rate of US$1.67 per common unit), which would become fully effective for the distribution with respect to the quarter ending December 31, 2013..