Paragon Offshore plc today announced that Paragon repurchased an aggregate principal amount of US$25.2 million of its senior unsecured notes in December 2014 at an aggregate cost of US$15.3 million including accrued interest. The repurchases consisted of US$15.2 million of its 6.75% senior notes due in 2022 and US$10.0 million of its 7.25% senior notes due in 2024. Paragon repurchased the senior notes at an average purchase price of 60.6% of face value including accrued interest. These repurchases are in addition to previously announced repurchases which included an aggregate principal amount of US$10 million purchased during the early fourth quarter of 2014.
As a result of the repurchases, Paragon expects to recognise a gain on debt retirement in the fourth quarter of 2014, net of the write-off of issuance costs, of approximately US$11.7 million, of which approximately US$1.5 million is related to the previously announced repurchases and was previously disclosed. The repurchases were made using available cash and borrowings under credit facility. Approximately US$35 million remains of the original US$100 million senior notes repurchase program authorised by Paragon's board of directors.
Adapted from press release
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