Seadrill launches $1.7 billion term loan B at Libor plus 300-325 bps

By Sara Rosenberg

New York, Feb. 4 - Seadrill Ltd. launched on Tuesday its $1.7 billion seven-year term loan B with price talk of Libor plus 300 basis points to 325 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

Also included in the company's $1.8 billion credit facility is a $100 million first-out senior secured revolver.

Security is four of the company's ultra-deepwater drilling rigs and certain other assets.

Commitments are due on Feb. 14, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are the joint lead arrangers and bookrunners on the deal. Co-managers include ABN Amro Capital USA LLC, HSBC Bank USA, ING Bank NV and BNP Paribas.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Closing is targeted for the third week of February.

Seadrill is an Oslo-based provider of offshore drilling services to the oil and gas industry.

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