The senior unsecured bonds are convertible into common shares of the Company. The bonds are expected to have an annual coupon in the range of 3.625% - 4.125% payable semi-annually in arrear and a conversion premium of 40% - 45% over the volume weighted average price of the Company's shares on the Oslo Stock Exchange (converted into US$) at the time of pricing.
The convertible bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, converted or purchased and cancelled, mature in November 2012. Seadrill has the right to call the bonds after three years plus 21 days, if the value of the Seadrill shares underlying one bond on the Oslo Stock Exchange (translated into US$) exceeds, for a specified period of time, 130% of the principal amount of the bond.
The bonds are expected to be settled on or around November 8, 2007. Seadrill may decide to list the bonds on an exchange at a later stage.
The proceeds from the convertible bond offering will be partly used as alternative unsecured top-up financing for the existing 14 new buildings Seadrill has under construction. The major part of the bond proceeds is however expected to be used to secure future growth of the Company's assets in addition to the existing new building commitments.
ABG Sundal Collier and Deutsche Bank are acting as joint bookrunners, joint lead-managers and sole syndicate members for the offering.
This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for any securities of Seadrill Limited.
Seadrill expects to announce the final terms and conditions related to the convertible bond transaction on Monday, October 29, 2007.
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