North Atlantic Drilling Commences IPO on NYSE

west phoenix semisubmersible drilling rig nadl
NADL’s West Phoenix, image © North Atlantic Drilling Ltd.

North Atlantic Drilling Ltd., a pure-play harsh environment offshore drilling specialist, has announced today the commencement of their initial public offering (IPO) of 13,513,514 common shares on the New York Stock Exchange under ticker (NADL).   At their IPO share price of $9.25, this IPO could raise upwards of $125 million for the drilling contractor.

North Atlantic Drilling notes they will grant the underwriters a 30-day option to purchase up to 2,027,027 additional common shares.

On January 23, 2014, the closing price of North Atlantic Drilling’s common shares on the Norwegian OTC List was $8.97 per share (based upon the Bloomberg Composite Rate of $0.1639 per NOK 1.00 in effect on that date).

NADL, a company majority owned by Seadrill, has six rigs in operation offshore Norway and one rig operating in the UK sector of the North Sea and two rigs under construction.

At Jurong Shipyard, the harsh environment semi submersible West Rigel is scheduled for delivery in the first quarter of 2015.  NADL notes that should the rig be targeted for operation in the Barents Sea, they are discussing with the shipyard extra cost associated with full winterization for year around operation as well as additional mooring.

NADL notes that construction of the harsh environment jack1up rig, West Linus is is ongoing at the Jurong Shipyard in Singapore. The project has suffered a minor delay and delivery is now expected early January 2014.. The rig will be owned by Ship Finance Limited, however placed on a 15-year charter back to NADL upon delivery, with purchase options.   ConocoPhillips Skandinavia AS has contracted the rig for a 5-year operation offshore Norway.