Pacific Drilling gets consents needed to amend 7¼% notes due 2017

By Angela McDaniels

Tacoma, Wash., Oct. 5 – Pacific Drilling SA received consents from a majority of holders of the 7¼% senior secured notes due 2017 issued by indirect wholly owned subsidiary Pacific Drilling V Ltd., according to a company news release.

Pacific Drilling sought holder approval to amend a covenant in the notes indenture to allow it or some of its subsidiaries to incur debt based on the number of vessels owned by the company and its subsidiaries in order to align the provision with that of its 5 3/8% senior secured notes due 2020.

The amendment allows the company to incur more debt that is secured on assets other than the collateral securing the notes or, specifically, to draw more debt under its revolving credit facility due June 2018, which had been limited by the secured debt incurrence covenant.

The consent solicitation was originally scheduled to end at 5 p.m. ET on Oct. 4, at which time the holders of 30% of the notes had submitted consents.

On Oct. 5, the company extended the expiration to 5 p.m. ET on Oct. 5 and said the consent payment could be an amount of up to $22 million.

Seaport Global Securities LLC (212 616-7748) was the solicitation agent. Global Bondholder Services Corp. (866 470-3800 or 212 430-3774) was the information and tabulation agent.

Pacific Drilling is an ultra-deepwater drilling contractor with corporate offices in Houston and other offices in Brazil, Luxembourg, Nigeria, Singapore and South Korea.

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