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: December 4, 1995
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
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99-Press Release dated November 30, 1995
- Announcing the closing of two separate private
financings aggregating approximately $115 million,
which included the sale/lease-back of the "M. G.
HULME, JR.".
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
Executive Vice President,
Finance and Administration
Dated: December 4, 1995
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(713) 496-5000
Houston, Texas...November 30, 1995...Reading & Bates Corporation (NYSE:
RB) announced today that it had simultaneously closed two separate private
financings aggregating approximately $115 million. The proceeds from the
financings were used to repay all of the Company's obligations to
Internationale Nederlanden Bank, N. V., with the remainder available for
working capital and general corporate purposes.
The first financing, consisting of up to $60 million in funding, inclusive
of a funding provision for upgrades, was structured as a sale and ten year
lease of the semi-submersible drilling unit "M. G. Hulme, Jr." The lease
contains a provision which allows Reading & Bates to repurchase the Hulme
at the end of the lease for a fair market price not to exceed a fixed
percentage of original sales price. As previously announced, the Hulme
will be upgraded to operate in 3,300 feet of water in 1996 after which it
will commence a three year contract with Enserch Exploration.
The second financing is a five year revolving credit and letter of credit
line totaling $55 million with Christiania Bank. The terms of the
agreement with Christiania Bank allow the Company to borrow, on a
revolving credit basis, up to $45 million in funded debt, with the undrawn
balance of funded debt, plus an additional $10 million available for
letter of credit requirements. The aggregate amount of the facility
reduces over the five year term. Approximately $37 million of funded debt
remained undrawn and available to the Company after close.
Paul B. Loyd, Jr., the Company's Chairman and CEO, said: "I am pleased to
confirm completion of these two financings, the first of which, was
specifically structured to take advantage of the Company's current tax
profile. The new financings provide the Company with enhanced liquidity
and working capital and give Reading & Bates improved financial
flexibility to take advantage of new opportunities. The combined
facilities provide Reading & Bates with an excellent after tax cost of
capital which, inclusive of the Hulme buy back provision, compares very
favorably with alternatives currently available in the public debt and
equity markets."
Reading & Bates is a New York Stock Exchange listed company, providing
offshore drilling services throughout the world. Its wholly owned
subsidiary, Reading & Bates Development Co., provides technical,
construction and project management services and floating production
systems to the upstream offshore oil and gas industry worldwide.
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