The rig-owning subsidiary of Odfjell Drilling is hoping to raise $400-$500million in a private placing to boost its ultra deepwater rig fleet.
Odfjell Offshore said it may also over-allot up to 10% of additional new shares and it would look to list on the Oslo Stock Exchange by the end of May following the placing.
The firm currently operates six deepwater and harsh environment semi-submersible drilling rigs and ultra deepwater drillships.
Odfjell Offshore chairman Simen Lieungh said: “Odfjell Offshore’s strategy is to expand our drilling operations in the ultra deepwater and harsh environment market.
“Our fleet is uniquely positioned and we have a strong backlog. Currently, we have one new-build ultra deep water semi under construction.
“In addition, we have secured an option to build two similar units at Daewoo Shipbuilding and Marine Engineering in South Korea.”
Odfjell Offshore has retained DNB Markets, Pareto Securities, RS Platou Markets and Swedbank First Securities as joint lead managers and bookrunners.
Danske Markets and Nordea Markets have been recruited as co-lead managers to advise on and effect the private placement of new shares directed towards investors in Norway and other areas.
Odfjell Drilling will remain a majority shareholder of Odfjell Offshore, whose rigs are currently under contracts in Norway, UK, Brazil, Angola and Tanzania, after the private placement.
The rigs are the Deepsea Atlantic, Deepsea Aberdeen and Deepsea Stavanger (all 100%-owned), Deepsea Metro I and Deepsea Metro II (both 40%) and Deepsea Bergen (71.5%).
Odfjell Offshore also has an ultra deepwater and harsh environment semisubmersible drilling rig under construction at Daweoo Shipyard in South Korea, with expected delivery in May 2014, and options for two similar units with scheduled delivery in December 2014 and March 2015.