Odfjell Drilling strengthens market position, finances with Deepsea Bollsta acquisition

Odfjell Drilling released a new company presentation following its acquisition of the Deepsea Bollsta rig and the successful pricing of $650m senior secured first lien bonds. Chief executive Kjetil Gjersdal called it a "busy, but valuable week," referencing contract extensions, the accretive acquisition of the Deepsea Bollsta (renamed Deepsea Bergen), and an optimized long-term financing structure until 2031.

The acquisition of the Deepsea Bollsta, a modern Tier 1 harsh environment semi-submersible rig, is expected to add approximately $100m in annual EBITDA and $355m in firm backlog. Valued at $480m, this deal is below estimated replacement and newbuild costs, strengthening Odfjell Drilling's position in the high-end harsh environment market. The rig is currently contracted with Equinor with a firm period of 2.1 years and five 1-year options.

The new financing structure includes $650m in senior secured first lien bonds at a 7.25% coupon, extending maturities until 2031. This oversubscribed refinancing effort secures long-term funding with improved margins on bank facilities, reduces bond financing costs, and maintains a robust balance sheet with an equity ratio of 54% and available liquidity of $244m.