HAMILTON, Bermuda, Jan. 12, 2022 /PRNewswire/ -- Seadrill
Limited ("Seadrill" or the "Company") (OSE: SDRL)
(OTCPK: SDRLF) and the Issuer today announce that the Issuer
has successfully received approval from the U.S. Bankruptcy Court
for the Southern District of Texas
(the "Court") for its "one-day" chapter 11
restructuring. The Court confirmed the Issuer's chapter 11
plan of reorganization (the "Plan"), which received nearly
unanimous support from existing stakeholders. The Plan
provides the Issuer with financial and strategic flexibility and
stability by amending and extending the Issuer's secured notes,
effectuating a transfer of majority ownership of the Issuer from
the wider Seadrill group to the secured noteholders, and
facilitating the entry into management agreements with Seadrill for
the continued provision of management services and operational
support to the Issuer and its subsidiaries. The Plan also
provides for the satisfaction of all trade, customer, and other
non-funded debt claims in full in the ordinary course of
business. Benefitting from both the new ownership structure
and the continuity provided by the Seadrill group, the Issuer
expects to continue to focus on maximizing value for all
stakeholders from its portfolio of investments including the
Seabras Sapura JV and the SeaMex group.
The key terms of the Plan include:
- the release by the holders of the Issuer's 12.0% Senior Secured
Notes due 2025 (the "Noteholders" and the "Notes",
respectively) of all existing guarantees and security and claims
(if any) with respect to Seadrill and its subsidiaries (excluding
the Issuer and certain of its subsidiaries);
- the Noteholders receiving 65% of pro forma equity in the
Issuer, with Seadrill Investment Holding Company (a subsidiary of
Seadrill) retaining the remaining 35% of pro forma equity in the
Issuer, which shall effect a separation of the Issuer and its
subsidiaries (including the Seabras Sapura assets and the SeaMex
group) from the consolidated Seadrill group;
- the Noteholders will have appointment rights in respect of 4
out of 5 of the Issuer's directors on the board of the restructured
Issuer's group, with the remaining director to be appointed by
Seadrill;
- new notes will be issued pro rata to Noteholders on amended
terms including:
- maturity date: July 15, 2026
- interest: either (a) 9.0%, consisting of (i) 3.00% cash
interest plus (ii) 6.00% PIK interest, or (b) 10.0% PIK, in each
case payable quarterly
- call protection: redemption price:
-
- prior to July 15, 2022: 105%
- on or after July 15, 2022:
102%
- on July 15, 2023 and thereafter:
100%;
- the Noteholders will have a first priority right to fund any
additional liquidity needs of the Issuer or its affiliates;
and
- Seadrill will continue to provide certain management services
to the Issuer's group.
Confirmation of the Issuer's Plan brings the Seadrill group one
step closer to finalizing the comprehensive restructuring of the
Seadrill group. The Issuer expects to emerge from chapter 11
in the near term. Seadrill's chapter 11 plan of
reorganization was confirmed by the Court in October 2021 and is anticipated to go effective
in the first quarter of 2022.
Copies of the Plan and Disclosure statement are available at the
following website:
https://cases.primeclerk.com/SeadrillNewFinance/.
Kirkland & Ellis LLP and Slaughter and May are serving as
legal advisors to the Issuer in connection with the
restructuring. Akin Gump Strauss Hauer & Feld are serving
as legal advisors to an ad hoc group of the Noteholders (the "Ad
Hoc Group"), and Ducera Partners LLC are serving as the Ad Hoc
Group's financial adviser.
This announcement relates to Seadrill New Finance Limited and is
not expected to impact the recoveries existing shareholders of
Seadrill Limited will receive under the Seadrill Limited
Plan. Consummation of the Seadrill Limited Plan is subject to
a number of customary terms and conditions, including court
approval, which was obtained on October 26,
2021.
About Seadrill
Seadrill is a leading offshore drilling contractor utilizing
advanced technology to unlock oil and gas resources for clients
across harsh and benign locations across the globe. Seadrill's high
quality, technologically advanced fleet spans all asset classes
allowing its experienced crews to conduct its operations from
shallow to ultra-deep-water environments. The Company operates 37
rigs, which includes drillships, jack-ups and
semi-submersibles.
Seadrill is listed on the Oslo Børs and OTC Pink markets. For
more information, visit https://www.seadrill.com/.
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such
statements are generally not historical in nature, and specifically
include statements about the Company's plans, strategies, business
prospects, changes and trends in its business, the markets in which
it operates and its restructuring efforts. These statements are
made based upon management's current plans, expectations,
assumptions and beliefs concerning future events impacting the
Company and therefore involve a number of risks, uncertainties and
assumptions that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
which speak only as of the date of this news release. Consequently,
no forward-looking statement can be guaranteed. When considering
these forward-looking statements, you should keep in mind the risks
described from time to time in the Company's regulatory filings and
periodical reporting. The Company undertakes no obligation to
update any forward looking statements to reflect events or
circumstances after the date on which such statement is made or to
reflect the occurrence of unanticipated events. New factors emerge
from time to time, and it is not possible for the Company to
predict all of these factors. Further, the Company cannot assess
the impact of each such factor on its business or the extent to
which any factor, or combination of factors, may cause actual
results to be materially different from those contained in any
forward looking statement.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
CONTACT:
For further information, please
contact:
Media questions should be directed to:
Sara Dunne
Director of Communications
communications@seadrill.com
+ 1 281 630 7064
Analyst questions should be directed to:
Hawthorn Advisors
seadrill@hawthornadvisors.com
+44 (0) 203 7454960
This information was brought to you by Cision
http://news.cision.com
The following files are available for download:
https://mb.cision.com/Main/18925/3485317/1519799.pdf
|
Release
|