SDLP - Amendments to Certain Credit Facilities to Insulate Seadrill Partners from Seadrill Limited's Restructuring
(Thomson Reuters ONE) -
London, United Kingdom, August 17, 2017 - Seadrill Partners ("SDLP or the
Company") announces today that it has completed amendments to three secured
credit facilities that relate to rigs purchased by the Company from Seadrill
Limited that will insulate the Company from events of default related to
Seadrill Limited's likely use of chapter 11 proceedings to implement its
restructuring plan.
The amendments to the three facilities remove Seadrill Limited and its
consolidated entities as a borrower or guarantor, separate the facilities such
that the resulting Seadrill Partners facilities are secured only by the
Company's assets without recourse to Seadrill Limited or its assets, and extend
the maturities of the resulting Seadrill Partners facilities by 2.5 years.
As part of this transaction we have agreed to a prepayment of US$100 million
upon closing and two subsequent prepayments of US$25 million, one of which will
be made six months after closing and another of which will be made 12 months
after closing, in each case distributed pro rata across the three resulting
Seadrill Partners facilities. We have also agreed to certain covenant and
security amendments and to cancel the $100 million revolver provided by Seadrill
Limited. For additional information please refer to the agreements included in
the Company's Form 6K filed along with this announcement.
Our existing management and operational arrangements with Seadrill Limited will
remain in place and the Company's business operations remain unaffected by
Seadrill Limited's restructuring efforts.
In April 2017, we deferred distributions to common unitholders pending
completion of this transaction and we will resume distributions at the same
level as prior to the deferral.
We have therefore declared a quarterly cash distribution with respect to the
first and second quarters of 2017 of $0.10 per unit for each quarter. This cash
distribution will be paid on or about September 5, 2017 to all unitholders of
record as of the close of business on August 29, 2017.
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, trends in its
business and the markets in which it operates and insulation from Seadrill
Limited's restructuring. 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 and
the effects of Seadrill Limited's restructuring. 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: 17.08.2017 - 07:30 Uhr
Sprache: Deutsch
News-ID 556838
Anzahl Zeichen: 5212
contact information:
Town:
London
Kategorie:
Business News
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"SDLP - Amendments to Certain Credit Facilities to Insulate Seadrill Partners from Seadrill Limited's Restructuring"
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