Seadrill Announces Emergence from Chapter 11
Seadrill 2021 Limited (“Seadrill” or the “Company”) announced today (the “Effective Date”) that it has emerged from Chapter 11 after successfully completing its reorganization pursuant to its Chapter 11 plan of reorganization (the “Plan”). The Plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on October 26, 2021.
The restructuring significantly delevered the Company’s balance sheet by equitizing approximately $4.9 billion of secured bank debt previously held across twelve silos, resulting in a streamlined capital structure with a single collateral silo. The Company also raised $350 million in new financing pursuant to the Plan. Holders of existing shares (the “Existing Shares”) in the Company’s predecessor, Seadrill Limited, were reduced to 0.25% of their existing holdings, while the Company’s employee, customer, and ordinary trade claims were unaffected by the restructuring. The Company’s streamlined capital structure and the substantial liquidity raised pursuant to the Plan provide the Company with secure footing to pursue opportunities in the offshore drilling industry and grow value for its stakeholders.
Stuart Jackson, CEO of Seadrill, commented: “Our emergence from Chapter 11 concludes the realignment of our balance sheet. I am grateful to all our employees, customers, partners, suppliers, creditors and shareholders for their support through this long process.
“Our restructured balance sheet provides us greater liquidity and lower debt leverage. With this firm financial footing established and market recovery well underway, Seadrill will focus on disciplined capital investment, cost containment, and contract risk management to maintain its position as a leader in the reshaping of the industry.”
The figures presented below highlight key financial metrics as of the Effective Date:
- Total cash of 486m, inclusive of $151m of restricted cash
- $300 million of first-lien new-money debt, comprised of a $175 million term loan facility and an undrawn $125 million revolving credit facility
- $683 million of second-lien takeback debt
- $50 million of unsecured convertible bonds
- Common shares issued of approximately 50 million as described further below.
Issuance, Listing and Trading of New Common Stock
Subject to certain approvals, the Company intends to have the New Common Shares listed on the Euronext Expand market in Oslo (“Euronext Expand”) with a subsequent uplisting to the main market of the Oslo Stock Exchange (the “OSE”) and the New York Stock Exchange (the “NYSE”).
Approximately 50 million New Common Shares were issued as of the Effective Date and remain outstanding. The New Common Shares are allocated as set forth below, in accordance with provisions of the Plan:
- 83.00% of the New Common Shares issued to holders of credit agreement claims against the Company and certain of its Chapter 11 debtor affiliates;
- 16.75% of the New Common Shares issued to rights offering participants and backstop parties under the Plan; and
- 0.25% of the New Common Shares issued to holders of Existing Shares in the Company’s predecessor.
Subject to certain approvals, we expect that trading in the New Common Shares on Euronext Expand will commence in the second quarter of 2022. Further details in respect of the New Common Shares will be set out in a listing prospectus which will be approved by the Norwegian Financial Supervisory Authority and published prior to listing at Euronext Expand.
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SDRL – Ex. right to shares in Seadrill today
Issuer name: Seadrill Limited
Ex. date: 23 February 2022
Type of corporate action: Right to shares in the new parent company for the Seadrill group following emergence from Chapter 11, whose name will be changed on or about the date of emergence to Seadrill Limited.
Other information: Reference is made to the stock exchange announcements published by Seadrill Limited on 21 and 22 February 2022.
This information is published in accordance with the requirements of the Continuing Obligations pursuant to Oslo Rule Book II.
