Paragon Offshore Prices $1.08 Bln Of Senior Notes In Connection With Spin-Off

(RTTNews) - Paragon Offshore Limited, in preparation for its previously announced spin-off from Noble Corporation plc (NE), announced the pricing of $500 million aggregate principal amount of Paragon's 6.75% senior unsecured notes due 2022 and $580 million aggregate principal amount of its 7.25% senior unsecured notes due 2024, in a private offering that is exempt from registration under the Securities Act of 1933, as amended.

The company said the notes will be issued at a price of 100% of their face value. The aggregate principal amount of the notes was decreased from the previously announced $1.185 billion aggregate principal amount.

A corresponding increase was made to Paragon's previously announced proposed senior secured term loan B credit facility, which is expected to be entered into at the closing of the notes offering.

The offering of the notes is expected to close on July 18, 2014, subject to certain conditions, including the completion of the transfer of Noble's standard specification drilling business to Paragon, the funding under the $650 million Term Loan Facility and other customary closing conditions, the company stated.

Paragon said it intends to use the net proceeds from the offering of the notes, together with the borrowings under the Term Loan Facility, to repay all or substantially all of the promissory notes that it expects to issue to Noble as partial consideration for the transfer to Paragon of Noble's standard specification drilling business in connection with the spin-off.