HOUSTON, March 26 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that it has completed the sale of $1 billion of notes through
RBF Finance Co. as follows:
$400,000,000 11% Senior Secured Notes due 2006
$400,000,000 11 3/8% Senior Secured Notes due 2009
$200,000,000 12 1/4% Senior Notes due 2006
The secured notes are secured by liens on ten drilling rigs, including
five rigs in R&B Falcon's deepwater construction program. Because of strong
interest in the offering, the Company increased the size of the financing from
the original offering of $800 million.
Proceeds from the offering are being used to retire borrowings under the
Company's bank revolver and interim construction facilities for the Deepwater
Frontier and Deepwater Millennium and for general corporate purposes,
principally to fund capital expenditures in connection with its deepwater
construction program.
Steve Webster, R&B Falcon's President and Chief Executive Officer
commented: "This offering reduces our reliance on bank financing and planned
project financings, the timing of which had been delayed. While we still plan
to complete project financings for the Deepwater Frontier, which is jointly
owned with Conoco, and the RBS-8M, timing is now not as critical since the
proceeds realized will be used to enhance our liquidity reserve. We believe
this financing ensures that R&B Falcon can complete the industry's largest
deepwater construction program and maintain a comfortable liquidity reserve
even under the current weakened market conditions the industry is
experiencing. Completion of this construction program will firmly establish
us as the leader in ultra deepwater and produce significantly enhanced cash
flow from the drilling contracts backing these new rigs. We believe R&B
Falcon is the company in the industry best positioned to take full advantage
of the eventual improvement in the commodity price environment."
R&B Falcon Corporation operates the world's largest fleet of marine-based
drilling rigs servicing the international oil and gas industry. Its fleet is
composed of 136 marine-based drilling units including the industry's largest
fleets of barge and jackup rigs, and a fleet of semisubmersibles and
drillships which is among the most capable in the world. R&B Falcon also
provides turnkey and integrated services and operates mobile production units,
internationally-based land drilling rigs and an offshore towing business.
SOURCE R&B Falcon Corporation
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Related links:
http://www.rbfalcon.com
Company News On-Call:
http://www.prnewswire.com/comp/118988.html or fax,
800-758-5804, ext. 118988
CONTACT:
Charles R. Ofner of R&B Falcon Corporation,
281-496-5000
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