SDRL - Seadrill announces the outcome of the incentive offers for convertible bonds due 2012 and 2014
Hamilton, Bermuda, December 20, 2010 - Seadrill is pleased to announce that
holders of US$603.6 million in principal amount of its convertible bonds due
2012 (ISIN: NO0010395981) ("2012's") and US$492.9 million in principal amount of
its convertible bonds due 2014 (ISIN: NO0010538705) ("2014's"), have accepted
the respective incentive offers that were made on December 16, 2010 and expired
on December 17, 2010.
 Seadrill will accept for early conversion US$250 million in principal amount of
the 2012's (being the "maximum conversion amount"), representing 25% of the
outstanding loan amount. Seadrill will also accept early conversion US$492.9
million in principal amount of the 2014's, representing 98.6% of the 2014's. As
the principal amount of the 2012's offered for conversion exceeds the Maximum
Conversion Amount, validly offered 2012's will be scaled back by a pro-ration
factor of approximately 41.4%.
The VWAP ("volume weighted average price") for the incentive offers, calculated
in accordance with the conditions stipulated in the incentive offers, is
US$32.0397. As a result, the incentive payment on the 2012's will be US$9,988.59
per US$100,000 principal amount of bond and the incentive payment on the 2014's
will be US$13,347.53 per US$100,000 principal amount of bond.
Seadrill is pleased with the acceptance levels for the incentive offers which
reduce our interest bearing obligations by some US$750 million. The accelerated
conversion will increase our financial flexibility and strengthen our ability to
undertake further investments whilst maintaining our dividend policy. Seadrill
has an optimistic view on the prospects of the offshore drilling industry.
ABG Sundal Collier Norge ASA, Credit Suisse Securities (Europe) Limited and
Deutsche Bank AG, London Branch are engaged by Seadrill as managers for the
Incentive Offers.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Seadrill Limited via Thomson Reuters ONE
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