Chiles Offshore orders jack-upNews // October 5, 2000
The new rig will cost approximately $110 million to complete, excluding interest and other capitalised costs, and will be financed through equity raised in the Company's recent initial public offering of common stock and debt financing raised under a USMaritime Administration (MARAD) guarantee.
The company has received a commitment letter from MARAD which covers up to $81 million of construction and term financing for the new rig. In addition, the commitment letter allows the company to raise an additional $83 million in debt financing, shouldit exercise its option to order a second rig from AMFELS within twelve months.
The company also announced that its Board of Directors has been expanded to include three new members: Mr Patricio Alvarez Morphy, Mr Luis Alvarez Morphy, and Mr Allan Locker.
Mr William Chiles, Chief Executive Officer of the Company, commented: "We are very pleased to be able to further develop our company through the placement of this new rig order with AMFELS shipyard. This new ultra-premium jack-up rig will be a sister rigto the jack-up rig we have under construction in Singapore at Keppel FELS Limited. This order also provides us with an opportunity to extend our relationship with AMFELS shipyard which successfully delivered our first two ultra-premium jack-up rigs in 1999."