Seadrill gets consent to super senior loan in lieu of interest payment

By Taylor Fox

New York, Oct. 30 – Seadrill Partners LLC reached an agreement with term loan B lenders representing a majority of the ad hoc group that creates a super senior loan in lieu of a cash interest payment due Sept. 30, according to a news release.

The $63.6 million super senior loan due February 2021 was created carrying PIK interest of Libor plus 1,000 basis points and a 10% exit premium.

As previously reported, Seadrill elected not to make the $46 million September interest payment under its term loan B and it entered into a 30-day grace period expiring Oct. 30.

After discussions with the ad hoc group, an agreement was reached to remove the potential for an event of default related to non-payment of interest at the end of the grace period and provide a super senior loan in lieu of receipt of cash interest with respect to the interest payment.

The consent solicitation period for the non-ad hoc group lenders’ participation expired on Oct. 26, and the amendment has closed.

The option to participate was offered to all lenders on a pro rata basis. Participation beyond the ad hoc group was not required for closing.

In connection with the amendment, Seadrill appointed Mohsin Y. Meghji, managing partner of M-III Partners, LP, as its chief restructuring officer.

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

© 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.