Seadrill Partners, a subsidiary of Norwegian oil and gas equipment company Seadrill with interests in three rigs and one drillship, announced terms for its IPO on Monday. The Hamilton, Bermuda-based limited liability company plans to raise $184 million by offering 8.8 million units at a price range of $20 to $22. At the midpoint of the proposed range, Seadrill Partners would command a market value of $869 million. Citi, Morgan Stanley and Wells Fargo are the joint bookrunners on the deal.
The company's drilling rigs are currently under long-term contracts with major oil companies, including Chevron, BP and ExxonMobil, with an average remaining term of 4.1 years. John Fredriksen, the Norwegian-born oil tanker and shipping tycoon worth an estimated $13.2 billion, is founder and Chairman of the parent company, Seadrill Limited (NYSE: SDRL). His other public companies include Frontline (NYSE: FRO) and Golar LNG (NASDAQ: GLNG). Frontline's shares averaged a 70% annual increase from 1999 through 2007.
