SDLP - Amendments to Certain Credit Facilities to Insulate Seadrill Partners from Seadrill Limited's Restructuring
August 17 2017 - 1:30AM
London, United
Kingdom, August 17, 2017 - Seadrill Partners ("SDLP or the
Company") announces today that it has completed amendments to three
secured credit facilities that relate to rigs purchased by the
Company from Seadrill Limited that will insulate the Company from
events of default related to Seadrill Limited's likely use of
chapter 11 proceedings to implement its restructuring plan.
The amendments to the three facilities
remove Seadrill Limited and its consolidated entities as a borrower
or guarantor, separate the facilities such that the resulting
Seadrill Partners facilities are secured only by the Company's
assets without recourse to Seadrill Limited or its assets, and
extend the maturities of the resulting Seadrill Partners facilities
by 2.5 years.
As part of this transaction we have
agreed to a prepayment of US$100 million upon closing and two
subsequent prepayments of US$25 million, one of which will be made
six months after closing and another of which will be made 12
months after closing, in each case distributed pro rata across the
three resulting Seadrill Partners facilities. We have also agreed
to certain covenant and security amendments and to cancel the $100
million revolver provided by Seadrill Limited. For additional
information please refer to the agreements included in the
Company's Form 6K filed along with this announcement.
Our existing management and operational
arrangements with Seadrill Limited will remain in place and the
Company's business operations remain unaffected by Seadrill
Limited's restructuring efforts.
In April 2017, we deferred
distributions to common unitholders pending completion of this
transaction and we will resume distributions at the same level as
prior to the deferral.
We have therefore declared a quarterly
cash distribution with respect to the first and second quarters of
2017 of $0.10 per unit for each quarter. This cash distribution
will be paid on or about September 5, 2017 to all unitholders of
record as of the close of business on August 29, 2017.
FORWARD LOOKING STATEMENTS
This news release includes forward
looking statements. Such statements are generally not historical in
nature, and specifically include statements about the Company's
plans, strategies, business prospects, changes, trends in its
business and the markets in which it operates and insulation from
Seadrill Limited's restructuring. These statements are made based
upon management's current plans, expectations, assumptions and
beliefs concerning future events impacting the Company and
therefore involve a number of risks, uncertainties and assumptions
that could cause actual results to differ materially from those
expressed or implied in the forward looking statements, which speak
only as of the date of this news release. Important factors that
could cause actual results to differ materially from those in the
forward looking statements include, but are not limited to the
performance of the drilling rigs in the Company's fleet; delay in
payment or disputes with customers; fluctuations in the
international price of oil; changes in governmental regulations
that affect the Company or the operations of the Company's fleet;
increased competition in the offshore drilling industry; hire rates
and factors affecting supply and demand for drilling rigs; the
financial condition of the Company's existing or future customers;
and general economic, political and business conditions globally
and the effects of Seadrill Limited's restructuring. Consequently,
no forward looking statement can be guaranteed. When considering
these forward looking statements, you should keep in mind the risks
described from time to time in the Company's filings with the SEC,
including its Annual Report on Form 20-F (File No.
001-35704).
The Company undertakes no obligation to
update any forward looking statements to reflect events or
circumstances after the date on which such statement is made or to
reflect the occurrence of unanticipated events. New factors emerge
from time to time, and it is not possible for us to predict all of
these factors. Further, the Company cannot assess the impact of
each such factor on its business or the extent to which any factor,
or combination of factors, may cause actual results to be
materially different from those contained in any forward looking
statement.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Seadrill Partners LLC via Globenewswire
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