HOUSTON, Jan. 15, 2016 /PRNewswire/ -- Paragon
Offshore plc ("Paragon") (OTC: PGNPF) today announced that it has
elected to defer an interest payment of approximately $15.4 million due today on its 6.75% senior
unsecured notes maturing July 2022
(the "2022 Notes"). Under the terms of the indenture governing
the 2022 Notes, the company has a 30-day grace period after the
interest payment date before an event of default
occurs. Paragon believes it is in the best interests of all
stakeholders, including equity holders, to use the grace period to
continue to engage in discussions with its secured and unsecured
debtholders related to alternatives to improve Paragon's long-term
capital structure.
There is no assurance that the discussions with Paragon's
debtholders will result in an agreement before the end of the grace
period. Paragon can elect to make the interest payment at any
time during the grace period. However, if Paragon decides not
to make the interest payment by the end of the grace period, such
failure would result in the rights of the requisite holders of
certain of its indebtedness, including the 2022 Notes and revolving
credit facility, to accelerate the repayment of the principal
amounts due thereunder, which acceleration would result in a
cross-default under Paragon's term loan facility.
Randall D. Stilley, President and
Chief Executive Officer of Paragon, said, "Paragon has made the
strategic choice to defer this interest payment as constructive
dialogue with debtholders continues. We believe we are making
progress in achieving our objective to improve the long-term
capital structure of the company. Paragon's substantial cash
position at December 31, 2015, more
than $750 million, provides us with
flexibility as we negotiate. Furthermore, it allows us to
continue to meet all of our obligations to suppliers, employees,
and others as we deliver safe, reliable, and effective operations
to our customers in the normal course of business."
Forward-Looking Disclosure Statement
This release contains forward-looking statements. Statements
regarding future payment of interest, debtholder discussions and
the characterization thereof, timing of any future announcements,
as well as any other statements that are not historical facts in
this release, are forward-looking statements that involve certain
risks, uncertainties and assumptions. These include but are not
limited to risks associated with the general nature of the oil and
gas industry, risks associated with the operation of Paragon as a
separate, publicly traded company, actions by regulatory
authorities, customers and other third parties, and other factors
detailed in the "Risk Factors" section of Paragon's annual report
on Form 10-K for the fiscal year ended December 31, 2014, Paragon's most recently filed
report on Form 10-Q, and in Paragon's other filings with the SEC,
which are available free of charge on the SEC's website at
www.sec.gov. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated.
About Paragon Offshore
Paragon is a global provider of offshore drilling
rigs. Paragon's operated fleet includes 34 jackups, including
two high specification heavy duty/harsh environment jackups, and
six floaters (four drillships and two semisubmersibles). Paragon's
primary business is contracting its rigs, related equipment and
work crews to conduct oil and gas drilling and workover operations
for its exploration and production customers on a dayrate basis
around the world. Paragon's principal executive offices are located
in Houston, Texas. Paragon is a
public limited company registered in England and Wales with company number 08814042 and
registered office at 20-22 Bedford
Row, London, WC1R 4JS,
England. Additional information is
available at www.paragonoffshore.com.
For additional
information, contact:
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For
Investors
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Lee M.
Ahlstrom
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&
Media:
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Senior Vice President
– Investor Relations, Strategy and Planning
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+1.832.783.4040
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SOURCE Paragon Offshore plc