SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: September 7, 1994
READING & BATES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5587 73-0642271
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
901 Threadneedle, Suite 200, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 496-5000<PAGE>
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated September 7, 1994 -
Agreement to purchase leased rigs.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf of the undersigned thereunto duly authorized.
READING & BATES CORPORATION
By /s/T. W. Nagle
T. W. Nagle
Vice President & Chief Financial Officer
Dated: September 7, 1994
EXHIBIT 99
For additional information, please contact: Mr. Charles R. Ofner
(713) 496-5000
September 7, 1994, Houston, Texas........Reading & Bates
Corporation (RB-NYSE) announced today that it has reached
agreement to purchase notes and interests representing 100% and
86% of lease debt outstanding in connection with the leveraged
leases of the drilling units "GEORGE H. GALLOWAY" and "C. E.
THORNTON", respectively, and 86% of the secured contingent
obligations in connection with the drilling unit "F. G.
McCLINTOCK", in a private transaction.
The consideration to be paid in connection with such
purchase will be approximately $9.0 million in cash and
approximately 4.2 million shares of the Company's common stock,
or approximately $34.5 million in total consideration at recent
stock prices.
Paul B. Loyd, Jr., the Company's Chairman and CEO said,
"This was an important purchase for the Company. It ensures long
term access to three 300 foot independent leg cantilever jackups
that have been leased by the Company, and it provides significant
reduction in our cost structure effective in 1996 or before,
compared to the lease and depreciation expense currently being
incurred on these three rigs. The sellers of the notes and
interests have achieved increased liquidity while retaining the
ability to participate in any recovery in the industry. So we
feel this was a true 'win-win' transaction."
Reading & Bates is a New York Stock Exchange listed company,
engaging in offshore drilling throughout the world. Its wholly
owned subsidiary, Reading & Bates Development Co., provides
technical, construction and project management services to the
upstream offshore oil and gas industry worldwide.
