Ensco and Rowan Companies have completed their previously announced merger following the satisfaction of all pending conditions including regulatory and shareholder approvals.
In October 2018, the two companies entered into a definitive merger agreement to create an offshore drilling major with a strong fleet of high-specification floaters and jack-ups.
The combined firm is known as EnscoRowan, with legacy Ensco and Rowan shareholders holding around 55% and 45% of the company respectively. At completion, Rowan shareholders received 2.750 Ensco shares against each Rowan share they held immediately before closing of the deal.
EnscoRowan president and CEO Tom Burke said: “The successful completion of our merger further enhances our market leadership with a fleet of high-specification floaters and jackups and diverse customer base.
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“Our growing geographic presence, technologically-advanced drilling rigs and talented employees position us exceptionally well to meet increasing and evolving customer demand.
“I look forward to executing on the significant long-term growth opportunities we believe we can capture from our combined strengths as the offshore sector recovers.”
With the combination, the merged entity’s offshore fleet comprises 16 drillships, 12 semisubmersibles, 54 jackups and two deepwater managed units.
Following the closing of the transaction, the combined group signed an agreement with its banking group to bolster its borrowing capacity under its unsecured revolving credit facility to nearly $2.3bn through September 2019.
From October 2019 through September 2022, EnscoRowan will have borrowing capacity of around $1.7bn.
EnscoRowan executive chairman Carl Trowell said: “The combination of Ensco and Rowan creates an industry-leading offshore driller across all water depths, establishing a stronger company capable of thriving throughout the market cycles.”