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 (Date of earliest event reported): JANUARY 11, 1999
PRIDE INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
LOUISIANA 1-13289 76-0069030
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
5847 SAN FELIPE, SUITE 3300
HOUSTON, TEXAS 77057
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 713/789-1400
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ITEM 5. OTHER EVENTS
The information set forth in the press release of Pride
International, Inc. (the "Company") dated January 11, 1999, included herewith as
Exhibit 1, is incorporated by reference in this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
1. Press release issued by the Company dated January 11, 1999.
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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 by the
undersigned hereunto duly authorized.
PRIDE INTERNATIONAL, INC.
Date: January 12, 1998 By: /S/ EARL W. MCNIEL
Earl W. McNiel
Vice President and Chief Financial Officer
EXHIBIT 1
[Logo of Pride International, Inc.]
NEWS RELEASE
5847 San Felipe, Suite 3300 * Houston, Texas 77057 * (713) 789-1400
FOR IMMEDIATE RELEASE Contact: Paul A. Bragg
Earl W. McNiel
(713) 789-1400
PRIDE UPDATES STATUS OF PROJECTS
HOUSTON, TEXAS, JANUARY 11, 1999 -- Pride International, Inc. (NYSE:PDE)
announced that a 30%-owned affiliate has entered into loan agreements totaling
$240 million with a Japanese trading company to provide long-term financing in
connection with the construction of two deepwater semisubmersible drilling rigs,
Amethyst 6 and Amethyst 7. The rigs are currently under construction in South
Korea and are contracted to Petrobras for operation offshore Brazil for a period
of seven years. The loan agreements provide that the borrower may undertake
additional borrowings of up to $100 million to fund the balance of the estimated
delivered cost of Amethyst 6 and Amethyst 7 and negotiations of such loans are
ongoing.
Also, the Company has concluded long-term financing agreements with
respect to the Pride Angola, the second of its two ultra-deepwater drillships
under construction. The Company may borrow up to $200 million pursuant to this
bank facility to finance construction of the drillship, which is expected to
cost approximately $235 million in total. Upon completion and acceptance by the
operator, likely in late 1999, the drillship will be sold by the Company to a
joint venture of which it is a 51% participant. At such time, the bank facility
provides that the construction loan will be retired with the proceeds of a
corresponding long-term joint venture loan to be provided by the same group of
banks. Borrowings under that loan are secured by the vessel and equipment and
are without recourse to the joint venture participants.
Additionally, Pride announced that the refurbishment of its jackup rig,
Pride Kansas, has been completed and that the rig is currently mobilizing for
work under a long-term contract in the U.S. Gulf of Mexico. Furthermore, the
service contract for the rig has been amended. The rig was previously contracted
for a term of two years, however, the Company and the customer have agreed to an
amendment to the contract that provides for an extended term of four years at a
daily rate of approximately $30,000.
Ray H. Tolson, Chairman and Chief Executive Officer of Pride said,
"Closing the loans for Amethyst 6 and 7 is a significant milestone in our
Brazilian joint venture's development. We continue to be encouraged with ongoing
efforts to complete financing of the other Amethyst units contracted in Brazil,
as well. The deployment of the Pride Kansas is likewise a major accomplishment.
The contract for the rig will provide attractive cashflows for an extended
period in the face of generally weak industry conditions."
Pride International, Inc. headquartered in Houston, Texas, is one of the
world's largest drilling contractors. The Company provides onshore and offshore
drilling, workover and related services in more than 20 countries, operating a
diverse fleet of 310 rigs, including three semisubmersible rigs, 17 jackup rigs,
nine tender-assisted rigs, seven barge rigs, 23 offshore platform rigs and 251
land rigs.
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