Friday, September 21, 2012

SeaDrill is at it again....files for a new IPO, SDLP

COT fund favorite SeaDrill [ticker SDRL] is at it again as today the file with the SEC for a new IPO. SDLP, a new limited liability corporation.

Seadrill Partners, who owns and operates offshore drilling rigs, files for an IPO under the ticker SDLP with a proposed maximum offering price of $225 million. SDLP operating revenues moved to $497 million in FY11 from $478 million in FY10. For H1 2012 revenues improved 11% to $275 million.

Seadrill Partners said it is an “emerging growth company” that currently has long term contracts with oil majors Chevron Corp. (NYSE: CVX), Total SA (NYSE: TOT), BP plc (NYSE: BP), and Exxon Mobil Corp. (NYSE: XOM). Seadrill is majority owned by the Fredriksen Group, which also owns majority interests in Golar LNG Ltd. (NASDAQ: GLNG), Golar LNG Partners LP (NASDAQ: GMLP), and Frontline Ltd. (NYSE: FRO).

Seadrill Ltd. will own 70% of the common units of Seadrill Partners following the IPO. The new company also plans “to make accretive acquisitions of drilling rigs from Seadrill and third parties” under an agreement that will give Seadrill Partners a first right to purchase additional interests in a jointly owned operating company and “a right to purchase any drilling rigs acquired or placed under contracts of five or more years after the closing date of this offering.”

According to the filing, Seadrill Partners will use the proceeds from the filing “as consideration for the acquisition of our interest in [the jointly owned operating company] from Seadrill.”

This was just announced today so we still don't have it sorted out but anything SeaDrill is sure to get investors attention.

Here is the complete SEC filing.

Update/Edit for Monday Sept. 24th....

Hamilton, Bermuda, September 21, 2012 - Seadrill Partners LLC ("Seadrill Partners") announced today that it has filed a registration statement with the U.S. Securities and Exchange Commission (the "SEC") for an initial public offering of Seadrill Partners' common units. Seadrill Partners has applied to list its common units on The New York Stock Exchange under the symbol "SDLP".

Seadrill Partners was formed by Seadrill Limited to own, operate and acquire offshore drilling rigs under long-term contracts. Seadrill Partners' initial fleet will consist of two semi-submersible rigs (West Capricorn and West Aquarius), one drillship (West Capella) and one tender rig (West Vencedor).

Citigroup will act as the lead book running manager of the offering.

The offering of the common units will be made only by means of a prospectus. A written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, when available, may be obtained from the offices of Citigroup Global Markets, Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, Email: BATProspectusdept@citi.com, Telephone: 800-831-9146.

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