Seadrill Partners in 12.9M-unit public offering, shares -3.3% AH


Seadrill Partners (SDLP) -3.3% AH after announcing a public offering of 12.9M common units; also, in a private placement, Seadrill (SDRL) will purchase $50M in units at public offering price.

SDLP plans to use the net proceeds to fund its portion of the cash purchase price in connection with its acquisition of two semi-submersible drilling rigs.

From other sites
Comments (5)
  • Budavar
    , contributor
    Comments (1401) | Send Message
     
    Proof of SDRL's unrivaled financial flexibility on the 7 seas.
    2 Dec 2013, 07:44 PM Reply Like
  • elvislevel
    , contributor
    Comments (840) | Send Message
     
    Either that or they are looking for new suckers to fund their show.
    5 Dec 2013, 09:56 AM Reply Like
  • MisterEC
    , contributor
    Comments (331) | Send Message
     
    That amounts to taking a piece of the company private.
    2 Dec 2013, 08:13 PM Reply Like
  • User 11162971
    , contributor
    Comment (1) | Send Message
     
    How does this amount to taking a piece of the company private?Selling the 12.9 MM common units at $31 (previous close) raises roughly $400 MM in proceeds to SDLP. If SDRL only purchases $50 MM (12.5% of the offering), it is diluting its ownership in SDLP... this would actually increase SDLP's public float. Both entities are public and SDLP's only reason for existence is to be a tax advantaged cash flow vehicle (yeildco) which should theoretically achieve a higher valuation due to the contracted nature of its cash flows.
    3 Dec 2013, 10:38 AM Reply Like
  • mamerritt
    , contributor
    Comments (36) | Send Message
     
    People continue to be confused by JF's financial engineering. Fine by me. This totals 3 rigs "sold" by SDRL to SDLP in 4Q13. The "sale of assets" line is going to jack up EPS like crazy. All while keeping the rigs on the books through management contracts and various GAAP measures. Grabbed a bunch more shares on yesterday's downward spike.
    5 Dec 2013, 11:31 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs