The business combination, initially announced in November last year, is now concluded with the completion of Noble’s recommended voluntary public share exchange offer to the shareholders of Maersk Drilling
Noble, Maersk Drilling complete merger. (Credit: Zachary Theodore on Unsplash)
US-based offshore drilling contractor Noble Corporation and Danish drilling rig operator Maersk Drilling have completed their previously announced business combination.
In November last year, the two companies signed an agreement to combine their operations in a primarily all-stock deal, with Noble as the surviving entity.
The transaction is now concluded with the completion of Noble’s recommended voluntary public share exchange offer to the shareholders of Maersk Drilling.
Noble said that the business combination provides significant operational and financial benefits to its customers, shareholders, and employees.
Noble president and chief executive officer Robert Eifler said: “The fundamental industrial logic of the combination is clear and has only grown stronger over the past year, driven by steady improvements in the offshore drilling market and a deeper appreciation of the immense talent across this newly combined team.
“I’d personally like to thank the employees of both companies for their sustained focus on safety, integrity, and service as we have worked through this demanding transaction process.
“I look forward to supporting this team through a rapid integration as we aim to position Noble as a new and dynamic leader in offshore drilling.”
The combined company will have an advanced fleet, which will be the youngest and with the highest specification, global scale, and diversification in the industry.
Supported by a contract backlog of more than $4bn and a balance sheet with low leverage and significant liquidity, the company will have strong cash flow generation and distribution.
Noble announced the receipt of preliminary commitments from a group of banks, for a $350m three-year term loan that would replace the existing Maersk Drilling syndicated facilities.
In addition, the company received a preliminary commitment for a $150m, three-year term loan to replace the existing Maersk Drilling loan with Danish Ship Finance.
Furthermore, Noble plans to close the previously announced sale of five jack-up rigs to an affiliate of Shelf Drilling for $375m on 5 October.
Noble Board of Directors chairman Charles Sledge said: “Today’s combination of Noble and Maersk Drilling represents a defining moment in the history of offshore drilling.
“We are excited to join forces with Maersk Drilling’s talented team and embark on this journey together as a combined company. I am confident that Noble is now better positioned to deliver enhanced value to all our customers and shareholders.”