Loan & DebtJun 15, 2026, 08:02 AM
Seadrill Finance to Offer $600M Senior Notes for Debt Redemption
AI Summary
Seadrill Limited announced that its wholly-owned subsidiary, Seadrill Finance Limited, intends to offer $600 million in senior unsecured notes due 2034. The net proceeds, combined with cash on hand, will be used to redeem all outstanding 8.375% Senior Secured Second Lien Notes due 2030, which had approximately $575 million outstanding as of March 31, 2026. Additionally, Seadrill Finance is in discussions to amend its Senior Secured Revolving Credit Agreement to increase commitments from $225 million to $300 million and extend the maturity date from 2028 to 2031, enhancing the company's financial flexibility and capital structure.
Key Highlights
- Seadrill Finance to offer $600M senior unsecured notes due 2034.
- Proceeds to redeem $575M of 8.375% Senior Secured Second Lien Notes due 2030.
- Discussions to increase revolving credit facility from $225M to $300M.
- Revolving credit facility maturity extension from 2028 to 2031.
- Total contract backlog $3.1B as of May 11, 2026.
- Net leverage ratio 0.9x as of March 31, 2026.
- Liquidity $482M as of March 31, 2026.
- LTM Adjusted EBITDA $377M for twelve months ended March 31, 2026.
Price Impact
More from SDRL