Noble Corporation plc announced today that it has completed the spin-off of all of the outstanding shares of Paragon Offshore plc, which owns most of Noble’s standard specification drilling business. As a result, Noble and Paragon are now two separate, publicly-traded companies.
On August 1, 2014, Noble distributed to its shareholders one ordinary share of Paragon for every three ordinary shares of Noble held at 5:00 p.m., New York City time, on the record date of the distribution, July 23, 2014.
No fractional Paragon shares were issued; however, shareholders who would otherwise have been entitled to receive a fractional Paragon share in the distribution instead received cash in lieu of that fractional share.
Paragon ordinary shares will begin “regular-way” trading under the symbol “PGN” on the New York Stock Exchange on August 4, 2014. Noble ordinary shares will continue to trade on the NYSE under the symbol “NE.”
Paragon Offshore was created to be the leading pure-play standard specification drilling company in the industry. The company owns a fleet of 42 Mobile Offshore Drilling Units (MODUs), one Floating Production, Storage and Offtake (FPSO) vessel and conduct contract labor operations on the Hibernia Platform offshore eastern Canada.
Paragon operates a fleet of “standard specification” drilling units. The company classifies rigs as standard specification vs. “high specification” based on a number of factors, including age, technological capabilities, size, water depth and load capacity. Standard specification rigs are generally 15 or more years old, have a “hook load,” or derrick hoisting capacity, of less than two million pounds, and have drilling equipment operated by mechanical, rather than electronic, means.
Standard specification rigs operate in the same worldwide markets and environments as high specification rigs, subject to their technical capabilities.