Diamond Offshore Drilling (DO) elected not to make the semiannual interest payment due in respect of its 5.70% Senior Notes due 2039

Diamond Offshore Drilling (NYSE: DO) disclosed:

Diamond Offshore Drilling, Inc. (the “Company”) elected not to make the semiannual interest payment due in respect of its 5.70% Senior Notes due 2039 (the “Notes”). Under the terms of the indenture governing the Notes, the interest payment was due on April 15, 2020, and the Company has a 30-day grace period to make the payment. Non-payment of the interest on the due date is not an event of default under the indenture governing the Notes but would become an event of default if the payment is not made within the 30-day grace period. During the grace period, the Company is not permitted to borrow additional amounts under the Credit Agreement (as defined below).

An event of default under the indenture governing the Notes would result in a cross-default under the Company’s senior 5-Year Revolving Credit Agreement, dated as of October 2, 2018, with Wells Fargo Bank, National Association, as administrative agent, an issuing lender and swingline lender, the lenders party thereto and the other parties thereto (the “Credit Agreement”), whereupon the Notes and the Company’s borrowings under the Credit Agreement may then be subject to acceleration. The acceleration of the Notes or the Company’s borrowings under the Credit Agreement would result in a cross-default under the indentures governing the Company’s 3.45% Senior Notes due 2023, 7.875% Senior Notes due 2025 and 4.875% Senior Notes due 2043, whereupon such notes may then be subject to acceleration, subject to a 10-day cure period.

The Company has retained the services of Lazard Frères & Co. LLC as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal advisor to assist the Board of Directors and management team in analyzing and evaluating the various alternatives with respect to its capital structure.

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