Vantage Drilling sells jackup pair to ADES for $190m

Offshore drilling contractor Vantage Drilling has agreed to sell two jackup rigs to Saudi Arabian offshore driller ADES Holding.

The two rigs in question are the Soehanah and the Topaz Driller. The two were bought for a total price of $190m in cash, subject to adjustments.

The first rig was sold via a share purchase agreement under which Vantage sold to ADES all issued and outstanding equity of its wholly-owned subsidiary Rig Finance Ltd, the owner of the Soehanah. Vantage’s indirectly held subsidiary P2021 Rig sold the second rig.

The two companies also agreed that the two rigs would continue to be managed by Vantage for three years after the sale to ADES.

According to the UAE-based company, each purchase agreement is subject to customary closing conditions and will occur as soon as all conditions are met or waived.

Under the terms of the company’s indenture relating to its 9.50% senior secured first lien notes due 2028, Vantage must repurchase the notes at par value using the net proceeds from any vessel sale and the sale of the rigs constitutes as such.

“The transaction will expand our management services platform, further strengthen our balance sheet and provide Vantage with important financial flexibility. The sale of this business does not end our involvement in operating these jack-up rigs as we will continue to manage the operations of the two rigs for three years,” said Ihab Toma, Vantage’s CEO.