HAMILTON, Bermuda, Jan. 20, 2022 /PRNewswire/ -- Seadrill
Limited ("Seadrill" or the "Company") (OSE: SDRL)
(OTCPK: SDRLF) and the Issuer today announce that the Issuer has
emerged from chapter 11 after successfully completing its
pre-packaged restructuring pursuant to its chapter 11 plan of
reorganization (the "Plan"). As previously announced,
the Plan was confirmed by the United States Bankruptcy Court for
the Southern District of Texas on
January 12, 2022. All
conditions precedent to the restructuring contemplated by the Plan
have been satisfied or otherwise waived. Seadrill New Finance
Limited will shortly be renamed Paratus Energy Services Ltd.
In accordance with the Plan, post emergence the board of
directors of the Issuer shall consist of between three and five
members, up to four of which shall be appointed by the Issuer's
noteholders, with the remaining director to be appointed by
Seadrill. As such, a newly constituted board of directors of
the Issuer was appointed today, consisting of Mei Mei Chow, Jim
LaChance, Matt Lyne, and
James Ayers. Sergio Delgado will initially act as an
observer.
The Plan, which received support from an overwhelming majority
of existing stakeholders, provides the Issuer with financial and
strategic flexibility and stability. Benefitting from both
the new ownership structure and the continuity provided by the
Seadrill group, the Issuer expects to continue to focus on
maximizing value for all stakeholders from its portfolio of
investments including the Seabras Sapura JV and the SeaMex group.
As noted in previous announcements, the key terms of the Plan
included:
- the release by the holders of the Issuer's pre-existing 12.0%
Senior Secured Notes due 2025 (the "Noteholders" and the
"Notes", respectively) of all existing guarantees and
security and claims (if any) with respect to Seadrill and its
subsidiaries (excluding the Issuer and certain of its
subsidiaries);
- the Noteholders receiving 65% of pro forma equity in the
Issuer, with Seadrill Investment Holding Company (a subsidiary of
Seadrill) retaining the remaining 35% of pro forma equity in the
Issuer, effecting a separation of the Issuer and its subsidiaries
(including the Seabras Sapura assets and the SeaMex group) from the
consolidated Seadrill group;
- the issuance of new notes pro rata to Noteholders on amended
terms including:
- total amount of reinstated new notes: $620,148,899;
- maturity date: July 15,
2026;
- interest: either (a) 9.0%, consisting of (i) 3.00% cash
interest plus (ii) 6.00% PIK interest, or (b) 10.0% PIK, in each
case payable quarterly;
- call protection: redemption price:
- prior to July 15, 2022: 105%;
- on or after July 15, 2022: 102%;
and
- on July 15, 2023 and thereafter:
100%;
- the Noteholders will have a first priority right to fund any
additional liquidity needs of the Issuer or its affiliates;
and
- Seadrill or its subsidiaries will continue to provide certain
management services to the Issuer's group.
The Plan also provided for the satisfaction of all trade,
customer, and other non-funded debt claims in full in the ordinary
course of business.
Copies of the key chapter 11 documents are available at the
following website:
https://cases.primeclerk.com/SeadrillNewFinance/.
If any Noteholders entitled to receive shares pursuant to the
Plan did not submit the relevant documentation by the relevant
deadlines, details will be available from tomorrow at the following
link
https://cases.primeclerk.com/SeadrillNewFinance/Home-DocketInfo?DocAttribute=7040&DocAttrName=NOTICEOFDISTRIBUTION_Q&MenuID=17868 with
further information on how to claim your equity distribution.
Alternatively, please contact Prime Clerk at
SeadrillNFBallots@primeclerk.com. Please note that the final
deadline for a Noteholder to claim the equity distribution it may
be entitled to under the Plan is 365 days from today's effective
date.
Kirkland & Ellis LLP and Slaughter and May served as legal
advisors to the Issuer in connection with the restructuring.
Akin Gump Strauss Hauer & Feld served as legal advisors to an
ad hoc group of the Noteholders (the "Ad Hoc Group"), and
Ducera Partners LLC served as the Ad Hoc Group's financial
adviser.
This announcement relates to Seadrill New Finance Limited and is
not expected to impact the recoveries existing shareholders of
Seadrill Limited will receive under the Seadrill Limited
Plan. Consummation of the Seadrill Limited Plan is subject to
a number of customary terms and conditions, including court
approval, which was obtained on October 26,
2021.
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, the markets in which
it operates and its restructuring efforts. 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. 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 regulatory filings and
periodical reporting. 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 the Company 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 information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
CONTACT:
For further information, please contact:
Media questions should be directed to:
Sara Dunne
Director of Communications
communications@seadrill.com
+ 1 281 630 7064
Analyst questions should be directed to:
Hawthorn Advisors
seadrill@hawthornadvisors.com
+44 (0) 203 7454960
This information was brought to you by Cision
http://news.cision.com
The following files are available for download:
https://mb.cision.com/Main/18925/3489921/1523194.pdf
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