Jul 2023
Conyers advised Seadrill Limited (“Seadrill”) (NYSE & OSE: SDRL) and several of its Bermuda subsidiaries including Seadrill Finance Limited (“Seadrill Finance”) and its Cayman subsidiary, on all aspects of Bermuda law and Cayman Islands law in connection with Seadrill Finance’s issuance of $500 million in aggregate principal amount of 8.375% senior secured second lien notes due 2030 (the “Notes”) in an offering conducted pursuant to Rule 144A/Regulation S.
In connection with the offering of the Notes, on July 11, 2023, Seadrill Finance entered into a senior secured five-year revolving credit facility (the “Revolving Credit Facility”) that permits borrowings of up to $225 million with an accordion feature of up to $100 million. The Revolving Credit Facility became effective upon the closing of the Notes offering, subject to standard borrowing conditions.
The Revolving Credit Facility and the Notes are (i) fully and unconditionally guaranteed, jointly and severally, by Seadrill, Seadrill Finance and certain subsidiaries of Seadrill and (ii) secured by first lien and second lien, as applicable, liens on certain vessels owned by the guarantors and related assets.
The Net proceeds from the Notes were utilised to fully settle obligations under Seadrill’s existing secured debt facilities, including associated exit fees. The residual funds from the Notes, along with proceeds from the Incremental Notes, are intended for Seadrill’s general corporate purposes.
Bermuda Director Jennifer Panchaud, London Counsel Karoline Tauschke and Barnabas Finnigan, and Bermuda Associate Lauren Pereira advised on the transaction, working alongside Baker Botts LLP.