Noble Corporation Approves Paragon Offshore Spinoff; Sets August 1 Date

Noble Corporation’s (NE) board of directors approved the spinoff of its standard spec drilling units, Paragon Offshore. The distribution is expected to take place on August 1st, which is just a few months after the company decided to scrap its plans to IPO the unit. Impressive turnaround on Plan B. The new company will trade on the NYSE under the ticker ‘PGN’ and Noble shareholders will receive 1 PGN share for every 3 NE shares owned. A ‘When-Issued’ market is expected to develop on or around July 23rd, which is also the date of record for the transaction.

David Williams, Noble’s Chairman, President & CEO, touted the news and both company’s prospects:

The successful launch of Paragon is an important strategic step for Noble…Noble will exit this process with a top tier fleet, a substantial contract backlog and a sharp focus on the high-specification drilling market, elements that when joined with our exceptional crews position Noble as a leader in the business for many years to come.  At the same time, Paragon is positioned to excel in the standard specification drilling sector, with well-maintained and efficient rigs, highly-competent crews, a strong customer base and a talented management team.” 

Paragon has been gearing up for independence and recently raised over over $1b in debt, most of which will be sent over to Noble as a special gift dividend for giving it life.

For additional information regarding this spinoff, check out the latest Form 10, Noble’s latest Fleet Status Report, and all of our earlier coverage on the topic.

Disclosure: Author holds no position in any stock mentioned.

(H/T Mike)