Seadrill Launches Voluntary Incentive Payment Offer - Quick Facts

(RTTNews) - Seadrill Ltd. (SDRL) reported launching a voluntary incentive payment offer to convert any and all of the $650 million principal amount of 3.375% Seadrill convertible bonds due 2017.

On July 8, Seadrill launched a voluntary exchange offer that was contingent upon the successful completion of a new convertible bond issuance. Owing to the negative share price development on the day of the issue leading to an unfavorable conversion price, both transactions were cancelled. A consequence of the cancellation of the incentive payment offer was that a number of convertible bondholders were harmed due to the common practice of hedging during a conversion offer.

The board bears significant responsibility to all stakeholders and never intends to harm any of the Company's loyal supporters, however, the Board was left with the difficult decision to accept an unattractive deal or create this unfortunate situation. The Company and the Board will not be forced to transact in any market at unfavorable terms, therefore saw cancellation as the only viable alternative. Considering this, the board would launch a new voluntary incentive payment offer which will not be contingent on the completion of any other transaction in order to counter the negative effects of last week's events.