Seadrill cancels $1B debt issue after steep slide in share price

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

Seadrill (SDRL) +4.4% premarket after scrapping plans for a $1B convertible bond issue after shares slid 5.2% yesterday, saying the debt issue had been an "opportunity," not a need, and that it would have a ~$1.5B cash balance at the end of July.

SDRL says that although the order book was covered, the sharp price drop led to an unattractive conversion price for the issue.

The offshore rig firm had said it planned to use the proceeds from the bond issue to fund its new-build program and for general corporate purposes.