Seadrill starts roadshow for $450 million seven-year second-lien notes; initial talk 8¾%

By Paul A. Harris

Portland, Ore., July 11 – Seadrill Finance Ltd. started a roadshow on Tuesday for a $450 million offering of seven-year senior secured second-lien notes (B2/BB), according to market sources.

The Rule 144A and Regulation S offering is in the market with initial guidance of 8¾%, a sellside source said.

The deal is set to price on Thursday.

The notes become callable after three years at par plus 50% of the coupon.

JPMorgan, Citigroup, Deutsche Bank and DNB are the joint bookrunners.

Barclays and BTIG are the co-managers.

The Hamilton, Bermuda-listed offshore drilling contractor plans to use the proceeds to prepay its secured debt facilities in full, with the remainder to be used for general corporate purposes.

In connection with the notes offering, Seadrill Finance entered a five-year senior secured revolving credit facility governed by a new credit agreement. It provides for commitments permitting borrowings of up to $225 million with an accordion feature of up to $100 million. The maturity may be reduced to four years subject to certain financial tests.

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