Seadrill -4.8% on plans to sell $1B of convertible bonds

|About: Seadrill Limited (SDRL)|By:, SA News Editor

Seadrill (SDRL -4.8%) opens sharply lower after launching a $1B 2019 convertible bond concurrently with a voluntary incentive payment offer to convert an existing $650M 3.375% 2017 convertible bond.

The senior unsecured bonds will be convertible into common shares, with an annual coupon of 2%-2.50%, and have a conversion premium of 30%-35% over the reference share price based on the volume-weighted average price of the company’s shares today in Oslo and New York.

SDRL intends to use the proceeds to fund its newbuild program and for general corporate purposes.