Noble To Spin-Off Standard Specification Business - Quick Facts

(RTTNews) - The Board of Directors of Noble Corp. (NE) Tuesday approved plan to spin-off its business comprised of many of its standard specification drilling units, thereby creating two separate offshore drilling companies.

Noble will continue to own and operate its high-specification assets with particular operating focus in deepwater and ultra-deepwater, harsh environment and high-specification markets.

Meanwhile, the new company will own and operate the standard specification drilling units in the Noble fleet, including five drillships, three semi-submersibles, 34 jackups, two submersibles, one FPSO, and will also be responsible for the Hibernia platform operations.

The spin-off allows both companies to have a more focused business and operational strategy, while enhancing each company's growth potential and overall valuation of its assets.

As per the plan, shares of the new company will be distributed to Noble shareholders in a spin-off that would be tax-free to shareholders.

As part off the spin-off, Noble may proceed with an IPO. In that case, the new company would file a registration statement for the IPO with the U.S. Securities and Exchange Commission in late 2013 or early 2014.

The new company may use the proceeds from the borrowings to repay Noble, the debt the new company would incur in order to acquire the standard specification business and assets from Noble.

The spin-off is expected to be completed by the end of 2014, pending shareholder's and other regulatory approval.