New Issue: Seadrill sells $75 million tap of 8 3/8% notes due 2030 at 100.75 to yield 8.232%

By Paul A. Harris

Portland, Ore., July 25 – Seadrill Ltd. priced a $75 million add-on to the Seadrill Finance Ltd. 8 3/8% senior secured second-lien notes due Aug. 1, 2030 (B2/BB/B+) at 100.75 to yield 8.232% in a Tuesday drive-by, according to market sources.

The issue price came at the rich end of the 100.5 to 100.75 price talk. Initial talk was par.

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

The Hamilton, Bermuda-listed offshore drilling contractor plans to use the proceeds for general corporate purposes.

Issuer:	Seadrill Finance Ltd.
Amount:	$75 million
Issue:	Senior secured second-lien notes add-on
Maturity:	Aug. 1, 2030
Bookrunners:	JPMorgan, Citigroup, Deutsche Bank and DNB
Coupon:	8 3/8%
Price:	100.75
Yield:	8.232%
Spread:	419 bps
First call:	Aug. 1, 2026 at 104.188
Special call:	10% of notes annually at 103 during non-call period
Trade date:	July 25
Settlement date:	Aug. 8
Ratings:	Moody’s: B2
	S&P: BB
	Fitch: B+
Distribution:	Rule 144A and Regulation S
Price talk:	100.5 to 100.75
Marketing:	Drive-by
Original issue:	$500 million priced on July 13, 2023
Fungibility:	Add-on notes to become fungible with original notes

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