Seadrill Partners to acquire ultra-deepwater drillship, offers 10.4M units

|About: Seadrill Partners, LLC (SDLP)|By:, SA News Editor

Seadrill Partners (SDLP) agrees to acquire the West Auriga ultra-deepwater drillship from Seadrill (SDRL) for ~$797M.

The drillship is expected to carry out operations in the Gulf of Mexico until the end of its contract in Oct. 2020 at a dayrate of $565K/day.

SDLP will recommend an increase in cash distributions of $0.13-$0.15/unit, which would take effect in the June 2014 quarter.

SDLP plans a public offering of 10.4M common units to fund the transaction; SDRL has committed to purchase at least $50M worth of the units at the public offering price.

SDRL +0.9%, SDLP -2.4% AH.