Seadrill in $1.35bn rig refinance deal

 

Seadrill has secured a $1.35 billion credit facility a day after pulling the plug on a planned $1 billion issue.

The Norwegian giant has refinanced a trio of ultra-deepwater units in a deal that boosts its available cash by $350 million.

A consortium of 17 banks are involved in the loan that has a five-year tenure and 10-year amortisation profile.

The three units involved are the semi-submersibles West Pegasus and West Orion and the drillship West Gemini.

Seadrill said the original plan was to refinance two units for $900 million, but the deal size was upped “due to strong interest from (the) banking group”.

“The new loan will be priced at a margin of Libor plus 2% and was substantially oversubscribed, demonstrating the strength of Seadrill's credit in the banking market,” it said.

“By concluding this transaction the company will be left with one ultra-deepwater and four jack-up units to be refinanced in 2015 and one ultra-deepwater and four jack-up units in 2016, totalling US$1.2 billion to be refinanced.”

On Wednesday Seadrill decided not to proceed with a $1 billion convertible bond deal after its share price fell. It said, however, that it remains in a strong cash position, and that the issue was an “opportunity” rather than a “requirement”.

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