Debt Overview

Funding strategy

Dolphin Drilling ASA aims to keep a balanced and conservative funding. The strategy supports the use of different sources to access the debt market to achieve financial flexibility.

Capital management

The Group’s objective is to have a sound financial position in order to maintain market confidence and sustain future development of the business.
The Board monitors the capital structure and return on capital on a continuous basis, with the aim to maintain a sustainable capital base while maximizing the return on capital.

Financial risk management

Dolphin Drilling ASA uses derivative financial instruments to manage the Group’s exposure to foreign exchange and interest rate risks arising from operational, financing and investment activities. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes.

Dolphin Drilling 14/19 FRN

Dolphin Drilling ASA issued a NOK 1.1 billion 5 years senior unsecured FRN bond 28 February 2014. Net proceeds from the bond issue were used for general corporate purposes.

Maturity date: 28 February 2019
Amount: NOK 1.1 billion
ISIN: NO 0010704125
Coupon: NIBOR 3m+ 3%
Coupon type: FRN
Coupon frequency: Quarterly
Day count basis: Actual/360
First payment date: 28 May 2014
Actual start date: 28 February 2014

Financial Covenants

(a) Free Cash
The Issuer shall, on a consolidated basis, maintain minimum Free Cash of USD 30 million.

(b) Leverage Ratio
The Issuer shall, on a consolidated basis, ensure that Net Interest Bearing Debt to EBITDA does not exceed 4.5:1.

(c) Interest Coverage Ratio
The Issuer shall, on a consolidated basis, maintain EBITDA to Net Interest Expenses at minimum 2.5:1.
The Leverage Ratio and the Interest Coverage Ratio shall be calculated on a trailing four-quarter basis.
The Issuer undertakes to comply with the above Financial Covenants at all times, such compliance to be measured on each Quarter Date and certified by the Issuer in accordance with Clause 13.2.3.

Bank Loan

USD 1.45 billion credit facility

In June 2014 Dolphin Drilling ASA signed a new six year bank credit facility of originally USD 2 billion. The newuild tranche for Bollsta Dolphin has been cancelled, hence the remaining facility amounted to USD 1.45 billion for general corporate purposes.

There are semi annual instalments of 95.5 million on the facility.

The facility is provided by a group of international banks.

Debt Analysts

Lars Kirkeby +47 22 48 42 64

ABG Sundal Collier
+47 22 01 60 27

Danske Bank
Sondre Dale Stormyr +47 85 40 70 70

Thomas Larsen +47 24 16 90 44

Pareto Securities
Øyvind Hamre +47 24 13 21 40

Dolphin Drilling ASA is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Dolphin Drilling`s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Dolphin Drilling or its management. Dolphin Drilling does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

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