Paragon Offshore repurchases $25M of senior notes

Paragon Offshore plc (NYSE: PGN) has repurchased an aggregate principal amount of $25.2 million of its senior unsecured notes in December at an aggregate cost of $15.3 million including accrued interest. 

The repurchases consisted of $15.2 million of its 6.75% senior notes due 2022 and $10 million of its 7.25% senior notes due 2024. Paragon repurchased the senior notes at an average purchase price of 60.6% of face value including accrued interest. These repurchases are in addition to previously announced repurchases which included an aggregate principal amount of $10 million purchased during the early fourth quarter of 2014. 

As a result of the repurchases, Paragon expects to recognize a gain on debt retirement in the fourth quarter of 2014, net of the write-off of issuance costs, of $11.7 million, of which $1.5 million is related to the previously announced repurchases and was previously disclosed. The repurchases were made using available cash and borrowings under the company’s credit facility. Approximately $35 million remains of the original $100 million senior notes repurchase program authorized by Paragon's board of directors.

A global provider of offshore drilling rigs, Paragon’s drilling fleet includes 34 jackups and eight floaters (five drillships and three semisubmersibles). In addition, Paragon is the majority shareholder of Prospector Offshore Drilling AS, a publicly traded offshore drilling company on the Oslo Axess stock exchange that owns and operates two high specification jackups. 

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