Each one in plain English, with the numbers worked through for a shareholder.
29 Jan 2016debt financing▼ BadMajor
Effective January 25, 2016, Rowan extended its revolving credit facility by a year to January 23, 2021, with availability of $1.5 billion through January 23, 2019, falling to $1.44 billion through January 2020 and about $1.29 billion to maturity; the press release says it is undrawn. The board also eliminated the $0.10 quarterly dividend per Class A share immediately (the release says this frees $50 million a year), and about $98 million of senior notes were retired in Q4 2015. For shareholders, the dividend is gone, while liquidity was strengthened. The facility is larger than the $1.0 billion set in January 2014 (it was amended again on May 5, 2015 per the filing).
Cognizant Holdings, Ltd, Integrated Assets, Ltd, ICS Opportunities, Ltd, Millennium International Management LP, Millennium International Management GP LLC, Millennium Management LLC, Israel A. Englander disclosed a new substantial ROWAN COMPANIES PLC shareholding (4.90% of votes).
Rowan furnished its routine monthly fleet status report as of September 25, 2014. It shows Rowan Renaissance operating off West Africa for Repsol, Rowan Resolute having left the HHI shipyard on July 22, 2014 with an Anadarko contract starting early November 2014, Rowan Reliance due from the shipyard at the end of October 2014 for Cobalt from late January 2015, and Rowan Relentless (the fourth drillship) due at the end of March 2015 for Freeport-McMoRan from early third quarter 2015. This updates the earlier open question on drillship contracting. Also noted are Saudi Aramco extensions for several rigs.
Blue Harbour Group, LP, Blue Harbour Holdings, LLC, Clifton S. Robbins reported a ROWAN COMPANIES PLC shareholding of 9,783,812 shares (7.90% of votes) in a periodic institutional filing.
On January 23, 2014 Rowan amended its main bank credit facility, raising borrowing capacity from $750 million to $1.0 billion, with an accordion allowing up to $1.25 billion with lender consent. The facility matures January 23, 2019, and is intended for working capital and general corporate purposes. This builds on the December 2012 amendment that set it at $750 million.
Rowan completed the $800.0 million senior notes sale announced on January 6, 2014: $400.0 million of 4.75% notes due 2024 and $400.0 million of 5.85% notes due 2044, guaranteed by the UK parent. Net proceeds are about $792.2 million, which Rowan Delaware intends to use for general corporate purposes, including capital expenditures. This resolves the open question on closing and use of proceeds.
On January 6, 2014 Rowan Companies, Inc. and its UK parent agreed with underwriters (Barclays, Citigroup, Goldman Sachs and Wells Fargo as representatives) to sell $800.0 million of senior notes: $400.0 million of 4.75% notes due 2024 and $400.0 million of 5.85% notes due 2044, guaranteed by the UK parent. The filing covers the underwriting agreement only; it does not state the use of proceeds, the net proceeds or a closing. It is another registered debt offering following the 2012 note sales.
