Ocean Rig UDW Inc. Announces Financing, Fleet and Contract Developments

NICOSIA, CYPRUS, Sep 03, 2013 (Marketwired via COMTEX) —
Ocean Rig UDW Inc.

/quotes/zigman/6688856/quotes/nls/orig ORIG
-0.34%

(the “Company” or “Ocean Rig”), a
global provider of offshore deepwater drilling services, announced
today the following:

$1.35 billion Bank Facility
The Company announced that it has signed
a supplemental agreement to amend certain provisions in its $1.35b
Senior Secured Facility dated February 28, 2013.

Under the terms of the agreement, the existing dividend restriction
of up to 50% of preceding fiscal year net income will be amended to
apply on a cumulative basis from July 1, 2013 onwards (50% of
cumulative net income and 100% of cumulative losses) and include a
carve-out to pay additional dividends up to the higher of (i) $150m
and (ii) 5% of the Company’s net tangible assets.

Furthermore, the minimum interest coverage ratio requirement will be
2.0 times until June 30, 2015 and the maximum leverage ratio will be
6.5 times until June 30, 2014, 6.0 times until December 31, 2014 and
5.5 times until June 30, 2015.

George Economou, Chairman and Chief Executive Officer of the Company,
commented:

“We are pleased that our syndicate of commercial banks and export
credit agencies agreed to our request to amend certain provisions in
their facility. These amendments will harmonize our restricted
payment provisions and certain financial covenants with those of our
other secured term loan facilities and notes.”

Delivery of the Ocean Rig Mylos
The Company announced that on August
20, 2013, it successfully took delivery of its newbuilding drillship
the Ocean Rig Mylos. The Ocean Rig Mylos is the first in the series
of three 7th Generation Ultra Deepwater Drillships the Company
expects to take delivery in 2013. The drillship is currently
mobilizing to offshore Brazil and is expected to commence drilling
operations under the 3-year drilling contract with Repsol Sinopec
Brasil S.A. by November 2013.

Order of 7th Generation Ultra Deepwater Drillship
The Company
announced that it has signed a contract to construct a 7th generation
ultra deepwater drillship at Samsung Heavy Industries. This 7th
Generation drillship is a sister ship to the three (Ocean Rig Skyros,
Ocean Rig Athena, Ocean Rig Apollo) drillships currently under
construction at Samsung, and is scheduled to be delivered to the
Company in December 2015. The project value price is estimated to be
approximately US$600 million. The Company has at no additional
consideration a fixed priced option, declarable by November 2013, for
an additional drillship for delivery in the first quarter of 2016.

George Economou, Chairman and Chief Executive Officer of the Company,
commented:

“We have taken advantage of our strong balance sheet and our
long-term relationship with Samsung to order at a very attractive
price an additional newbuild drillship, sistership to our existing
7th generation ultra deepwater drillships. We expect that our new
drillship will be financed through a combination of available cash
and debt to be secured prior to the delivery of the drillship in
December 2015.

With all of our 2013 newbuild drillships as well as our first 2015
newbuild drillship, the Ocean Rig Apollo, already contracted to
investment grade counter-parties, we are setting the stage for
moderate growth going forward. We believe that the ultra-deepwater
(“UDW”) drilling market for high quality assets will remain strong in
the foreseeable future and are excited about the future employment
prospects of our high quality homogeneous fleet.”

Contract Extension for the Eirik Raude
The Company announced that
Lukoil exercised its options for an additional two-well program under
the previously announced Contract Award for the Company’s
semi-submersible drilling rig Eirik Raude. The revised drilling
contract is for a firm six-well program and the rig is now expected
to be available for employment the earliest by December 2014.

About Ocean Rig
Ocean Rig is an international offshore drilling
contractor providing oilfield services for offshore oil and gas
exploration, development and production drilling, and specializing in
the ultra deepwater and harsh environment segment of the offshore
drilling industry. The Company owns and operates 11 offshore ultra
deepwater drilling units, comprising of 2 ultra deepwater
semisubmersible drilling rigs and 9 ultra deepwater drillships, two
of which are scheduled to be delivered to the Company during 2013 and
two of which are scheduled to be delivered during 2015.

Ocean Rig’s common stock is listed on the NASDAQ Global Select Market
where it trades under the symbol “ORIG.”

Visit the Company’s website at www.ocean-rig.com.

Forward-Looking Statements
Securities Litigation Reform Act of 1995
provides safe harbor protections for forward-looking statements in
order to encourage companies to provide prospective information about
their business. The Company desires to take advantage of the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995 and is including this cautionary statement in connection with
this safe harbor legislation.

Forward-looking statements reflect our current views with respect to
future events and financial performance and may include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which
are other than statements of historical facts. The words “believe,”
“intend,” “anticipate,” “estimate,” “project,” “forecast,” “plan,”
“potential,” “may,” “should,” “expect” and similar expressions
identify forward-looking statements.

The forward-looking statements in this release are based upon various
assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, management’s examination
of historical operating trends, data contained in our records and
other data available from third parties. Although we believe that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include (i) factors related to the offshore drilling
market, including supply and demand, utilization, day rates and
customer drilling programs; (ii) hazards inherent in the drilling
industry and marine operations causing personal injury or loss of
life, severe damage to destruction of property and equipment,
pollution or environmental damage, claims by third parties or
customers and suspension of operations; (iii) changes in laws and
governmental regulations, particularly with respect to environmental
matters; (iv) the availability of competing offshore drilling
vessels; (v) political and other uncertainties, including risks of
terrorist acts, war and civil disturbances piracy; significant
governmental influence over many aspects of local economies, seizure;
nationalization or expropriation of property or equipment;
repudiation, nullification, modification or renegotiation of
contracts; limitations on insurance coverage, such as war risk
coverage, in certain areas; political unrest; foreign and U.S.
monetary policy and foreign currency fluctuations and devaluations;
the inability to repatriate income or capital; complications
associated with repairing and replacing equipment in remote
locations; import-export quotas, wage and price controls imposition
of trade barriers; regulatory or financial requirements to comply
with foreign bureaucratic actions; changing taxation policies; and
other forms of government regulation and economic conditions that are
beyond our control; (vi) the performance of our rigs; (vii) our
ability to procure or have access to financing and comply with our
loan covenants; (viii) our ability to successfully employ our
drilling units; (ix) our capital expenditures, including the timing
and cost of completion of capital projects; and (x) our revenues and
expenses. Due to such uncertainties and risks, investors are
cautioned not to place undue reliance upon such forward-looking
statements.

Risks and uncertainties are further described in reports filed by
Ocean Rig with the U.S. Securities and Exchange Commission.








        
        Investor Relations / Media:
        Nicolas Bornozis
        Capital Link, Inc. (New York)
        Tel. 212-661-7566
        E-mail: oceanrig@capitallink.com

SOURCE: Ocean Rig UDW Inc.