Seadrill rids itself of Archer guarantees

Seadrill rids itself of Archer guarantees

Offshore driller Seadrill has closed a deal with oilfield services firm Archer to extinguish $253 million in financial guarantees provided by Seadrill.

The scrapping of the guarantees comes in exchange for a cash payment of approximately $25 million.

Seadrill said on Wednesday it remained in “constructive discussions” with Archer and its lenders to extinguish the remaining $25 million of financial guarantees in exchange for a cash payment representing 10% of their face value.

Seadrill said the deal was part of its restructuring plan.

Also, as part of Archer’s restructuring plans, Seadrill has also agreed to convert $146 million in subordinated loans and accrued interest provided to Archer into a $45 million subordinated convertible loan.

This means Seadrill will have a conversion right into equity of Archer in 2021 based on a strike price of $2.083 per share which is approximately 75% above the subscription price in Archer’s private placement on February 28, 2017.

The subordinated convertible loan will bear interest of 5.5%, and it matures in December 2021.

In a separate statement, Archer said the the loan conversion reduces its interest bearing debt by $80 million and other liabilities by $21 million.

As for the cash obtained from the release of the Seadrill guarantees, Archer has agreed with its banks to apply that payment to reduce its bank debt by approximately $25.3 million.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply