Bracewell Represents Wells Fargo in New $950 Million Credit Facility and an Amended Existing Credit Facility for Diamond Offshore Drilling

HOUSTON – Bracewell LLP represented Wells Fargo Bank, N.A., as administrative agent, in a new revolving credit facility for publicly traded offshore drilling company Diamond Offshore Drilling Inc. and its subsidiaries (Diamond), as well as the amendment and restructuring of Diamond’s existing credit facility.

The new five-year facility will provide borrowing capacity of $950 million. Diamond will continue to have access to its existing credit facility, which has been amended to provide for availability of approximately $325 million, with step-downs to occur over the next two years. Maturity of the existing credit facility is unchanged at October 2020, while the new credit facility will mature in October 2023. The new facility provides liquidity to Diamond and its foreign borrowing subsidiary, is supported by guarantees from certain Diamond entities and a pledge of 65 percent of the foreign borrower’s stock, and includes certain additional restrictions on Diamond and its subsidiaries.

Diamond is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe with a total fleet of 17 offshore drilling rigs, consisting of 13 semisubmersibles and four dynamically positioned drillships.

Bracewell lawyers involved in this transaction included:

Partners: Kate H. Day

Associates: Emily A. Banse and Shannon I. Lindamood