Seabed Prices $1.25 Billion Notes Offering
HOUSTON, November 04, 2020 -- Seabed Inc today announced that it had priced $500 million in aggregate principal amount of 4.625% notes due 2025 and $750 million in aggregate principal amount of 4.875% notes due 2028 in an underwritten public offering.
Seabed intends to use the net proceeds from the offering to purchase a portion of Seabed's outstanding senior indebtedness in cash tender offers concerning several series of its due notes, which commenced on July 3, 2020, with a maximum aggregate purchase price of $460.0 million (the "Tender Offers"); to repay a portion of outstanding borrowings under Seabed's senior revolving credit facility and for general corporate purposes.
After deducting the underwriting discount, Seabed's net proceeds but before deducting offering expenses payable by Seabed, are expected to be approximately $1.237 billion. The offering is expected to close on July 15, 2020, subject to the satisfaction of customary closing conditions. Joint book-running managers for the notes are J.P. Morgan Securities LLC, BofA Securities, Inc., BMO Capital Markets Corp., and Scotia Capital (USA) Inc.
This announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to buy or sell concerning any securities, including in connection with the Tender Offers, nor shall there be any sale of these securities in any jurisdiction in which such offer or solicitation or sale would be unlawful before registration or qualification under the securities laws of any such jurisdiction.
Cautionary Statements and Risk Factors That May Affect Future Results
This release's certain information is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking statements are not guarantees of performance. Actual events or results may differ materially because of conditions in our markets or other factors. Moreover, Seabed does not, nor does any other person, assume responsibility for the accuracy and completeness of those statements. Unless otherwise required by applicable securities laws, Seabed disclaims any intention or obligation to update any of the forward-looking statements after the date of this release. Suppose Seabed does update one or more forward-looking statements. In that case, no inference should be drawn that it will make additional updates concerning those or other forward-looking statements. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under "Risk Factors" in the Offer to Purchase and under "Forward-Looking Statements and Risk" and "Risk Factors" in Seabed's Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020, and June 30, 2020 (each of which is incorporated by reference in the Offer to Purchase) and similar sections in any subsequent filings, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements.Those risk factors may not be exhaustive. Seabed operates in a continually changing business environment, and new risk factors emerge from time to time. Seabed cannot predict these new risk factors or assess the impact, if any, of these new risk factors on Seabed's businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those described in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results.
For more information, visit www.Seabeddrills.com.