Key Highlights

• Seadrill’s subsidiary issued $700 million in 6.750% senior notes maturing July 15 2034, with semi‑annual interest.

• The firm may redeem up to 40% of the notes on equity proceeds at 106.750% of principal, provided at least 60% remains outstanding.

• A prior redemption of 10% of its 8.375% notes at 103% and the balance at 100% was triggered by a financing that generated at least $600 million.

• The revolving credit amendment raised borrowing capacity from $225 million to $300 million, though none has been drawn.

Seadrill Ltd (NYSE: SDRL) announced the placement of $700 million of senior notes bearing a 6.750% coupon and scheduled to mature on July 15 2034. Interest will be paid semi‑annually on January 15 and July 15, commencing in 2027. The notes are fully guaranteed by Seadrill and its subsidiaries.

Offering Structure

The notes were issued under a Rule 144A and Regulation S offering, with an indenture that includes standard covenants limiting additional debt, liens, and asset sales. The redemption framework allows the issuer to call the notes at a price equal to 100% of principal plus accrued interest before July 15 2029, incorporating a make‑whole premium.

Early Redemption Options

Seadrill may redeem a portion of the aggregate principal on one or more occasions, using proceeds from equity offerings. Such redemptions must be executed at 106.750% of the principal, and must leave at least 60% of the original amount outstanding after each event.

Change‑of‑Control Provision

If a change‑of‑control triggering event occurs, the notes can be repurchased at a price equal to 101% of principal, together with accrued interest. This clause provides investors with an additional safety net in the event of a merger or similar transaction. Ten percent of the outstanding aggregate principal was redeemed at 103% of principal, while the remaining balance was retired at 100% of principal.

The redemption required a financing that produced gross proceeds of at least $600 million. As of March 31 2026, approximately $575 million of the 2030 notes remained outstanding before the full settlement.

Credit Facility Expansion

A day after the note issuance, Seadrill executed Amendment 2 to its senior secured revolving credit agreement. The amendment increased borrowing commitments from $225 million to $300 million, effective June 30 2026. The expanded facility remains unused, preserving liquidity for future opportunities.

Market Impact

The new senior notes diversify Seadrill’s debt profile and extend maturity well beyond the previously issued 2030 notes. Combined with the larger revolving credit line, the financing package strengthens the company’s balance sheet and offers flexibility for upcoming capital projects.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.