Odfjell Drilling acquires Deepsea Bollsta, secures refinancing

Odfjell Drilling Ltd. announced the successful completion of its acquisition of the Deepsea Bollsta, a modern, high-specification harsh-environment rig. This includes the novation of its drilling contract with Equinor, extending the firm period until early 2028 with five one-year extension options. The rig, to be renamed Deepsea Bergen in 2026, is expected to immediately contribute to earnings and increases Odfjell Drilling's firm backlog by nearly $1 bn.

Parallel to the acquisition, Odfjell Drilling completed a comprehensive refinancing, optimizing its capital structure. This involved securing $550m in term loans and revolving credit facilities, alongside issuing a new $650m, 5.25-year rated bond on December 8, 2025. The refinancing lowered the bond coupon from 9.25% to 7.25% and reduced the average margin on bank facilities to 288 basis points over SOFR.

The refinancing maintains a balanced amortization profile, with approximately $94m average annual amortization over the next five years, and extends final debt maturities until 2031, providing long-term financial stability and flexibility. Odfjell Drilling previously operated the Deepsea Bollsta for three years, minimizing integration risks into its fleet.