SOURCE: Seadrill Limited

April 07, 2011 10:37 ET

SDRL - US$1,000 million Convertible Bond Agreement 2007/2012 ISIN NO 001 0395981 - Notification of Call Option

HAMILTON, NORWAY--(Marketwire - April 7, 2011) -

Hamilton, Bermuda, April 7, 2011 - The loan agreement for the US$1,000 million five year convertible bond issued by Seadrill Limited in 2007, maturing on November 8, 2012 (ISIN NO 001 0395981) provides Seadrill with the right to redeem the remaining outstanding bonds at par value plus accrued interest under certain conditions.

Seadrill has notified the trustee for the convertible bond, Norsk Tillitsmann ASA, that clause 10.2 in the loan agreement has been fulfilled as the parity value of each bond for at least twenty days out of a period of thirty consecutive trading days has exceeded 130 percent of the par value of the bonds, and that Seadrill is exercising its right to redeem the bond at par value plus accrued interest.

The remaining outstanding loan amount is US$749.5 million and current conversion price is $27.8 per share. The loan agreement provides the bondholders with a time window to convert their bonds into shares. If bondholders decide to convert all remaining bonds into shares, Seadrill will issue up to 26,960,431 new shares. Bonds that are not converted into shares will be redeemed at par value plus accrued interest. Final settlement date is May 10, 2011.

This information is subject of the disclosure requirements pursuant to section 5-12 of the 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


Contact Information

  • Analyst contact
    Jim Dåtland
    VP Investor Relations
    Seadrill Management AS
    +47 51 30 99 19