Seadrill successfully completes issuance of US$650 million convertible bond

Posted by on Oct 22, 2010 in Local News & Alerts | 0 comments

Seadrill Limited announces  that it has successfully completed a seven year US$650 million convertible bond in the international market.

The senior, unsecured bonds will have an annual coupon of 3.375% payable semi-annually in arrear and a conversion premium of 30% over the volume weighted average price of the Company’s shares on the Oslo Stock Exchange (converted into US$) up to the pricing of the bonds on October 21, 2010 (the “Reference Price”).

The Reference Price of the Company’s common shares was set at US$29.9363 (based on a volume weighted average price of NOK173.96 between launch and pricing).

The convertible bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, converted or purchased and cancelled, mature in October 2017.

Holders of the bonds will be entitled to require an early redemption of the bonds on the fifth anniversary after the issue date, at the principal amount together with accrued interest.

Seadrill will have the right to call the bonds after five years plus 21 days, if the value of the Seadrill shares underlying one bond on the Oslo Stock Exchange (translated into US$) exceeds, for a specified period of time, 150% of the principal amount of the bond.

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