Freshly Minted – September 23, 1999

WE’LL SEE YOU IN GREECE

We have received very strong response to the Ship Finance Forum Greece! Should you like to see the agenda, please send us an email or give us a ring at the contact numbers at the bottom of Freshly Minted.

OCEAN RIG

Crunch time for Ocean Rig, whose private placement clock began ticking Thursday. The company has until Tuesday to sell its “Oil Well in New England”-style stock. Ocean Rig said Thursday that it was too early to say whether existing shareholders would like to maintain their respective proportions. Alfred Berg, Pareto Fonds and Sundal Collier have the task of convincing the likes of Pro Safe and Noble Drilling that Ocean Rig is still an attractive buy (problem is, buyers might take this too literally). Meanwhile, the MeesPierson-Christiania team forced Ocean Rig to up its placement from $75mill. to $90mill., because the banks reduced the first eligible loan installment from $50mill. to $40mill. Overall, Ocean Rig cannot withdraw more than $75mill. of the $100mill. the banks had originally committed. Even that is contingent on proper delivery of the delayed Bingo rigs. Back at the ranch, Ocean Rig is fending off two arbitration suits. Maritima of Brazil has claimed $16mill., in effect for damages! suffered on account of invisible orders (not) secured by an invisible rig. Friede Goldman has slammed a $75mill. suit on the delayed rigs. It is hard to refute Ocean Rig’s claim that the rigs still have

good potential. The question is, is Ocean Rig itself the right company to run/sell them, especially when its entire future seems to depend on its ability to draw first (the money, we mean)?

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