| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Seadrill Ltd. > News item |
Seadrill begins another incentive offer for 3.375% convertibles
By Susanna Moon
Chicago, July 18 – Seadrill Ltd. said it began a voluntary incentive payment offer to convert its $650 million principal amount of 3.375% convertible bonds due 2017 on the heels of a recent failed attempt.
In the new offer, holders may convert their bonds until noon ET on July 24.
Those who convert their bonds will receive per $100,000 principal amount: 3,612 Seadrill shares, $11,840 in cash or shares and accrued interest from April 27 through July 28, according to a company press release.
Bondholders may receive the incentive payment in cash or in shares of Seadrill. If no election is made, holders will receive the incentive payment in cash.
Holders of more than 60% of the convertibles outstanding have already committed to accept the voluntary incentive payment offer, the company said.
The failed exchange offer had been conditioned on completion of a new convertible bond issue. “Due to the adverse share price development on the day of the issue leading to an unfavorable conversion price, both transactions were canceled,” the company said in the press release.
Due to the cancellation, the company said a number of holders were harmed due to the common practice of hedging during a conversion offer.
Given this, the company said it decided to move forward with a new offer, which is not contingent on completion of any other transaction.
“We look forward to putting this unfortunate situation behind us and continue our innovative and cost effective funding strategy,” the company added.
The company began the offer on July 8 and then scrapped the offer later the same day.
Under the previous offer, holders would have received per $100,000 principal amount: 3,612 shares, $10,465 in cash and accrued interest from April 27 through July 16.
Seadrill is a Hamilton, Bermuda-based offshore drilling company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.