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Ocean Rig UDW announces various developments

DryShips (DRYS) through its majority owned subsidiary, Ocean Rig UDW (ORIG) of offshore deepwater drilling services, announced that Ocean Rig has signed a supplemental agreement to amend certain provisions in its $1.35B Senior Secured Facility dated February 28. Under the terms of the agreement, the existing dividend restriction of up to 50% of preceding fiscal year net income will be amended to apply on a cumulative basis from July 1 onwards and include a carve-out to pay additional dividends up to the higher of $150M and 5% of the Ocean Rig's net tangible assets. Also, Ocean Rig announced that on August 20 it successfully took delivery of its newbuilding drillship the Ocean Rig Mylos. The Ocean Rig Mylos is the first in the series of three 7th Generation Ultra Deepwater Drillships, Ocean Rig expects to take delivery in 2013. Ocean Rig also announced that it has signed a contract to construct a 7th generation ultra deepwater drillship at Samsung Heavy Industries. This 7th Generation drillship is a sister ship to the three drillships currently under construction at Samsung, and is scheduled to be delivered to the Ocean Rig in December 2015. The project value price is estimated to be approximately $600M. Ocean Rig has at no additional consideration a fixed priced option, declarable by November, for an additional drillship for delivery in the Q1 of 2016.