HOUSTON, Aug. 18 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that its wholly owned indirect subsidiary, RBF Exploration
Co., had completed a $250 million project financing and that proceeds from the
financing had been received. The financing consisted of two tranches of notes
in the amounts of $200 million and $50 million, respectively. The first
tranche was rated "AA" by Standard & Poor's and Duff & Phelps Credit Rating
Co.; the second tranche was rated "BBB+" by Duff & Phelps Credit Rating Co.
The project financing proceeds will be used in connection with the
construction of the ultra deepwater/harsh environment semisubmersible,
DEEPWATER NAUTILUS, which is being built at Hyundai Heavy Industries in South
Korea and is due to be delivered in December 1999. The 8,000-foot water depth
capable NAUTILUS has a five-year contract with Shell Deepwater Development
Inc. in the Gulf of Mexico, which is projected to commence in the first
quarter of 2000. BTM Financial Services, Inc. led the financing transaction
as arranger. Paul B. Loyd, Jr., the Company's Chairman and CEO, said, "We are
pleased to complete this financing which further bolsters an already strong
liquidity picture at the Company. It is also important to note that the cost
of capital achieved in the transaction is very favorable due to the project
nature of the financing."
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 135 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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