SDLP - Amendments to Certain Credit Facilities
(Thomson Reuters ONE) -
London, United Kingdom, April 4, 2017 - Seadrill Partners ("SDLP or the
Company") announces today that Seadrill Limited, on behalf of SDLP, and its
banking group have agreed to extend a series of key dates as part of Seadrill
Limited's ongoing restructuring efforts. Seadrill Limited has reached agreement
to extend the milestone to implement a restructuring plan from 30 April to 31
July 2017 and also to extend the related covenant amendments and waivers
expiring on 30 June 2017 to 30 September 2017.
These covenants relate to the following secured credit facilities where both
parties are guarantors:
1. US$1.45 billion facility relating to both the West Vela drillship (owned by
Seadrill Partners) and the West Tellus drillship (owned by Seadrill
Limited), of which US$342 million was outstanding at the end of 2016 with
respect to the West Vela.
2. US$420 million facility relating to the West Polaris drillship (owned by
Seadrill Partners) of which US$279 million was outstanding at the end of
2016.
3. US$440 million facility relating to both the T-15 & T-16 tender rigs (owned
by Seadrill Partners) and the West Telesto jack-up (owned by Seadrill
Limited) of which US$119 million was outstanding at the end of 2016 with
respect to the T-15 & T-16.
These three facilities relate to rigs purchased by the Company from Seadrill
Limited which contain identical covenants to those in other Seadrill Limited
facilities.
As previously disclosed in our fourth quarter earnings report, Seadrill Partners
is working to insulate its debt from events of default that may occur on account
of Seadrill Limited's restructuring efforts and to address near-term refinancing
requirements. Specifically, Seadrill Partners has proposed the following to the
lenders under those three facilities:
1. Removal of Seadrill Limited as a guarantor under each of the three
facilities and separation of the facilities such that each facility is
secured only by Seadrill Partners' assets without recourse to Seadrill
Limited or its assets; and,
2. Extending the maturity of each of the three facilities by 2.5 years.
We are targeting execution of these amendments on a consensual basis prior to or
concurrent with the main Seadrill Limited restructuring agreement. In the event
a consensual agreement cannot be reached, we are preparing various contingency
plans that may be needed to preserve value and continue operations including
seeking waivers of cross default with Seadrill Limited and potential schemes of
arrangement and chapter 11 proceedings.
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such statements are
generally not historical in nature, and specifically include statements about
the Company's plans, strategies, business prospects, changes and trends in its
business and the markets in which it operates. In particular, statements
regarding projected changes in the Company's cash distributions, liquidity,
amount of the Company's estimated maintenance and replacement capital
expenditures, the Company's anticipated growth strategies and its ability to re-
contract its drilling rigs are considered forward looking statements. These
statements are made based upon management's current plans, expectations,
assumptions and beliefs concerning future events impacting the Company and
therefore involve a number of risks, uncertainties and assumptions that could
cause actual results to differ materially from those expressed or implied in the
forward looking statements, which speak only as of the date of this news
release. Important factors that could cause actual results to differ materially
from those in the forward looking statements include, but are not limited to the
performance of the drilling rigs in the Company's fleet; delay in payment or
disputes with customers; fluctuations in the international price of oil; changes
in governmental regulations that affect the Company or the operations of the
Company's fleet; increased competition in the offshore drilling industry; hire
rates and factors affecting supply and demand for drilling rigs; the financial
condition of the Company's existing or future customers; and general economic,
political and business conditions globally. Consequently, no forward looking
statement can be guaranteed. When considering these forward looking statements,
you should keep in mind the risks described from time to time in the Company's
filings with the SEC, including its Annual Report on Form 20-F (File No.
001-35704).
The Company undertakes no obligation to update any forward looking statements to
reflect events or circumstances after the date on which such statement is made
or to reflect the occurrence of unanticipated events. New factors emerge from
time to time, and it is not possible for us to predict all of these factors.
Further, the Company cannot assess the impact of each such factor on its
business or the extent to which any factor, or combination of factors, may cause
actual results to be materially different from those contained in any forward
looking statement.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Seadrill Partners LLC via GlobeNewswire
Datum: 04.04.2017 - 07:32 Uhr
Sprache: Deutsch
News-ID 534161
Anzahl Zeichen: 6124
contact information:
Town:
London
Kategorie:
Business News
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"SDLP - Amendments to Certain Credit Facilities"
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