Ocean Rig UDW Inc. Announces Pricing of Offering by its Wholly Owned Subsidiary of $800 Million of 6.5% Senior Secured Notes Due 2017

News Release Ocean Rig UDW Inc. (Corporate Head Office) September 15, 2012

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Nicosia, Cyprus – September 13,
2012 – Ocean Rig UDW Inc. (NASDAQ: ORIG)
(the “Company” or
“Ocean Rig”), a global provider of offshore
deepwater drilling services, announced today the pricing of
the offering of $800.0 million in aggregate principal amount of
6.5% senior secured notes due 2017
(the “Notes”) offered by its wholly owned subsidiary, Drill Rigs
Holdings Inc. (the “Issuer”), which
represents an increase of $50.0 million in aggregate principal
amount of Notes from the previous
announcement of the offering. The Notes are being sold in a
private offering within the United States
to qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended
(the “Securities Act”), and to certain
other persons outside of the United States in reliance on
Regulation S under the Securities Act. The Notes will be issued at
a price equal to 99.469% of their
face value.
The Notes will be guaranteed by Ocean Rig and certain
of the Issuer’s existing and future
subsidiaries
and the Notes and the related guarantees will be secured by
certain assets of, and by a pledge of the
stock of, the Issuer and the subsidiary guarantors.
The sale of the Notes is expected to be consummated on September
20, 2012, subject to customary
closing conditions.
Ocean Rig intends to use the net proceeds of this offering, if
completed, to fully repay all outstanding
indebtedness under its $1.04 billion senior secured credit
facility, amounting to approximately $487.5
million as of June 30, 2012, and for the purposes of financing
offshore drilling rigs, and to pay all fees
and expenses associated therewith.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the Notes and
the related guarantees, nor shall there be any sale of the Notes
and the related guarantees in any
jurisdiction in which such offer, solicitation or sale is
unlawful. Any offer of the Notes and related
guarantees will be made only by means of a private offering
memorandum.
The Notes and the related guarantees have not been, and will not
be, registered under the Securities Act
or the securities laws of any other jurisdiction and may not be
offered or sold in the United States
absent registration or an applicable exemption from registration requirements
under the Securities Act.</DIV></BODY></HTML>