Offshore drilling contractor Valaris Ltd. and its wholly-owned subsidiary Valaris Finance Co. LLC intend to offer those eligible in a private placement an additional $350 million in aggregate principal amount 8.375% senior secured second lien notes due 2030, according to an Aug. 7 press release.

The net proceeds of this offering will be used to finance the aggregate purchase price of approximately $337 million for the VALARIS DS-13 and VALARIS DS-14 drillships if the company chooses to exercise its right to take delivery on or prior to Dec. 31, the release said. Any proceeds not used to finance the drillships is expected to be used on general corporate purposes.

These notes will be considered a further issuance of a series of existing 8.735% senior secured second lien notes due 2030 in the aggregate principal amount of $700 million. These existing notes were issued on April 19.

Because the securities are not registered under the Securities Act of 1933, they may not be offered or sold in the U.S. without appropriate exemption. Valaris intends to only offer and sell the securities to qualified buyers pursuant to Rule 144A under the Securities Act and to those outside the U.S.

Valaris is an offshore drilling services company headquartered in Houston, Texas.