Offshore driller Seadrill has secured nearly $1.06bn of new capital after entering a restructuring agreement with more than 97% of its secured bank lenders, nearly 40% of its bondholders and a consortium of investors led by its largest shareholder, Hemen.
The new capital comprises $860m of secured notes and $200m of equity.
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Under the agreement, the lenders have also agreed to defer maturities of all secured credit facilities that amount to $5.7bn by approximately five years with no amortisation payments until 2020.
Furthermore, assuming unsecured creditors will support the plan, the company's $2.3bn of unsecured bonds and other unsecured claims will be converted into nearly 15% of the post-restructured equity, with participation rights in both the new secured notes and equity.
Seadrill common stock holders will receive around 2% of the post-restructured equity.
Seadrill Management president and CEO Anton Dibowitz said: "This is a testament to our position in the sector, having a large, modern fleet, a top-quality customer base and a proven operating track record.
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By GlobalData"With our improved capital structure, we will be in a strong position to capitalise when the market recovers."
The restructuring plan has been developed following detailed discussions for more than one year, enabling Seadrill to continue operating its large, modern fleet of drilling units.
In order to execute the restructuring agreement, Seadrill has already filed prearranged chapter 11 cases in the Southern District of Texas in the US together with the agreed restructuring plan.
In this deal, the company has engaged Kirkland & Ellis as legal counsel, Houlihan Lokey as financial advisor and Alvarez & Marsal as restructuring advisor.
