Vantage Drilling sells rigs and partners with ADES in Dubai

On September 9, 2024, Vantage Drilling International Ltd. announced a significant transaction involving the sale of two jack-up rigs to ADES International Holding Ltd. This agreement includes the sale of Vantage's wholly-owned subsidiary, Rig Finance Ltd., which owns the Soehanah jack-up rig, and the Topaz Driller. The total cash consideration for these assets is $190 million, subject to certain adjustments, and the closing of the sale is contingent upon customary conditions being met. In conjunction with the sale, Vantage and ADES will enter into a three-year management agreement for both rigs, allowing Vantage to continue managing operations. This strategic move is part of Vantage's ongoing efforts to strengthen its balance sheet and enhance financial flexibility. The management services agreement reflects ADES's confidence in Vantage's operational capabilities, particularly as ADES seeks to expand its international presence. Ihab Toma, Vantage's CEO, expressed satisfaction with the continuation of their strategic alliance with ADES, highlighting their previous collaborations in Egypt and Qatar. The sale of these rigs is seen as a way to leverage Vantage's management platform while providing first-class operational performance to clients. The transaction is also aligned with Vantage's obligations under its indenture relating to senior secured notes, which requires repurchasing notes using proceeds from vessel sales. Overall, this transaction marks a pivotal moment for Vantage, allowing it to focus on its core business while maintaining a role in the management of the sold rigs, thereby ensuring ongoing operational involvement and potential revenue generation.