{"id":7355,"date":"2023-10-26T05:46:00","date_gmt":"2023-10-25T21:46:00","guid":{"rendered":"http:\/\/www.oktcz.com\/?p=7355"},"modified":"2023-10-28T17:59:32","modified_gmt":"2023-10-28T09:59:32","slug":"valaris-secures-financing-for-pair-of-newbuild-jackups-in-joint-venture-with-aramco","status":"publish","type":"post","link":"https:\/\/www.oktcz.com\/en\/industry-news-en\/valaris-secures-financing-for-pair-of-newbuild-jackups-in-joint-venture-with-aramco.html","title":{"rendered":"Valaris secures financing for pair of newbuild jackups in joint venture with Aramco"},"content":{"rendered":"\n Valaris announced that ARO Drilling, its 50\/50 joint venture with Aramco, has secured financing for its first two newbuild jackups, Kingdom 1 and 2. ARO Drilling entered into a $359 million term loan with a syndicate of local Saudi Arabian banks to finance the deliveries, with the proceeds being used to pay the remaining shipyard purchase price for Kingdom 1 and 2 as well as for general corporate purposes. The loan matures in eight years and has a 16-year amortization profile with a 50% balloon payment due at maturity. Valaris announced that ARO Drilling, its 50\/50 joint venture with Aramco, has secured financing for its first two newbuild jackups, Kingdom 1 and 2. ARO Drilling entered into a $359 million term loan with a syndicate of local Saudi Arabian banks to finance the deliveries, with the proceeds being used to pay the remaining shipyard …<\/p>\n<\/figure>\n\n\n\n
Kingdom 1 is expected to be delivered and commence its contract with Aramco in Q4 2023, whereas Kingdom 2 is expected to be delivered and commence its contract with Aramco in Q1 2024. Day rates for the initial eight-year contracts will be determined using a pricing mechanism that targets a six-year payback for construction costs on an EBITDA basis. These initial contracts will be followed by a minimum additional eight-year term and re-priced every three years based on a market pricing mechanism.\uff082023-10-26\uff09<\/p>\n","protected":false},"excerpt":{"rendered":"