Seadrill Limited (SDRL) – Agreement with stakeholders to raise $ 350 million and reduce liabilities by approximately $ 5 billion

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HAMILTON from Bermuda, July 24, 2021 / PRNewswire / – Seadrill Limited (“Seadrill” or the “Company”) (OSE: SDRL) (OTC-PINK: SDRLF) is pleased to announce that today the Company has entered into a plan support agreement (the “PSA”) with certain of the Company’s senior secured lenders holding approximately 57.8% of the Company’s senior secured loans (the “Consent Lenders”) as well as a signed letter of guarantee commitment with some of the willing lenders. The agreements provide for a reorganization plan (the “Plan”) which will increase $ 350 million new financing and reduce the Company’s liabilities by more than $ 4.9 billion.

The Plan provides a clear path for Seadrill to restructure its balance sheet with the support of the majority of its senior secured lenders. Some of the willing lenders have also agreed to guarantee a first lien exit facility totaling $ 300 million. Lenders participating in (and supporting) the New Money Facility will collectively receive 16.75% of the New Equity of New Seadrill Company, subject to dilution. Under the plan, senior secured lenders will also exchange $ 5.6 billion of existing debt for $ 750 million second-link, debt assumed and 83% of new equity, subject to dilution. Hemen Holding Ltd., currently the Company’s largest shareholder, has also committed to finance a $ 50 million unsecured new money bond to be issued under the plan, which is convertible into 5% of the new shares under specified circumstances.

The specified trade receivables will be paid in full in cash and other general unsecured receivables will receive their share on a pro rata basis. $ 250,000 in liquid. Existing shareholders will receive 0.25% of the new equity, subject to dilution, if all classes of voting creditors agree to the Plan, and otherwise will not receive any recovery. Completion of the Plan is subject to a number of customary terms and conditions, including court approval.

Stuart jackson, CEO, commented: “We are pleased to announce that we have reached a consensus agreement with a large portion of Seadrill’s secured lenders that will pave the way for significant balance sheet deleveraging. It took a while to achieve the right result, but throughout the process we have maintained strong support from our creditors and look forward to maintaining it as they become our shareholders as well as our lenders.

I would also like to thank our employees, customers and suppliers for maintaining their focus on safe and efficient operations throughout this time. We must not lose sight of the fact that we collectively provide vital services in difficult everyday circumstances. This commitment, coupled with our restructured balance sheet, will allow Seadrill to emerge from Chapter 11 as a stronger company and play its role in the necessary consolidation of the industry. “

The Company has filed the Plan, an attached disclosure statement and related documents in United States South District Bankruptcy Court Texas today and will proceed quickly to obtain bankruptcy court approval. The PSA includes a step for the approval of the plan by the bankruptcy court by November 5, 2021.

Copies of the plan, PSA and support commitment letter, as well as other information regarding the Company’s Chapter 11 cases, are available at the following website: https://cases.primeclerk.com/SeadrillLimted/.

About Seadrill

Seadrill is a leading offshore drilling contractor using cutting edge technology to unlock oil and gas resources for clients in difficult and benign locations across the world. Seadrill’s high-quality and state-of-the-art fleet covers all asset classes, allowing its experienced crews to operate in shallow or ultra-deep water environments. The Company operates 24 platforms, which include drill ships, jackups 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 press release contains forward-looking statements. These statements are generally not historical in nature and specifically include statements about plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made on the basis of management’s current plans, expectations, assumptions and beliefs regarding future events affecting the Company and therefore involve a number of risks, uncertainties and assumptions that could result in that actual results differ materially from those expressed or implied in statements, which speak only as of the date of this press release. Therefore, no forward-looking statement can be guaranteed. When reviewing these forward-looking statements, you should keep in mind the risks described from time to time in the regulatory documents and periodic reports of the Company. The Company assumes no obligation to update forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unforeseen events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. In addition, the Company cannot assess the impact of each of these factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in a forward-looking statement.

This information is subject to disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Law.

CONTACT:

[email protected]

020 3745 4960

This information was brought to you by Cision http://news.cision.com

SOURCE Seadrill Limited


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