Deal Description: On July 27, 2023, Seadrill Limited (“Seadrill”) (NYSE & OSE: SDRL) announced that its subsidiary, Seadrill Finance Limited (“Seadrill Finance”), issued $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. Additionally, on July 25, 2023 Seadrill priced an additional $75 million in aggregate principal amount of 8.375% senior secured second lien notes due 2030 (the “Incremental Notes”) at 100.75% of par.
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 and available to be borrowed upon the closing of the offering of the Notes, subject to customary 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 used to pay in full amounts due under Seadrill’s existing secured debt facilities, including fees associated with exiting such facilities. Seadrill intends to use the remainder of the net proceeds from the Notes and the net proceeds from the Incremental Notes, for general corporate purposes.
Baker Botts Lawyers/Office Involved:
Corporate: David Emmons (Partner, Dallas), Clint Rancher (Partner, Houston), Lee Davis (Special Counsel, Washington D.C.), Michael Mazidi (Associate, Houston) and Talha Chaudhry (Associate, Houston)
Finance: Luke Weedon (Partner, Dallas), Alex Kamel (Senior Associate, Houston), Delaram Peimani (Associate, Austin), Demi Kampakis (Associate, Houston) and Regan Vicknair (Associate, Houston)
Tax: Derek Green (Partner, Houston) and Katie McEvilly (Senior Associate, Houston)
ABOUT BAKER BOTTS L.L.P.
Baker Botts is an international law firm whose lawyers practice throughout a network of offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy, technology and life sciences sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.