George Economou's Ocean Rig is readying to hive off two drilling rigs into a new entity that will offer equity on the Norwegian over-the-counter equity market.
The new entity, Valiant Offshore, is seeking to raise $175m through offering 17.5 million shares at $10 each. Ocean Rig will buy another 24 million shares at the same price.
Valiant will turn around and buy two Ocean Rig semi-submersible rigs, the Leiv Eiriksson (built 2001) and the laid-up Eirik Raude (built 2002), for $350m consisting of cash and shares.
Vesselsvalue assesses both drillships at a current value of $179.7m.
The remaining $65m equity in Valiant will go to working capital and general purposes.
The Leiv Eiriksson is currently on hire to Norway's Lundin for a fixed term plus options lasting through the third quarter of 2019. Afterwards, ConocoPhillips is scheduled to take over the rig.
Valiant says the vessel will have a revenue backlog of $132m.
Valiant's management will be comprised entirely of Ocean Rig officers, including current chief executive Pankal Khanna.
Ocean Rig will also contribute two directors to Valiant's board, including Anthony Kandylydis and John Simon. The remaining three directors will be independent.
