Hamilton, Bermuda, July 11, 2023 - Seadrill Limited ("Seadrill" or the
"Company") (NYSE & OSE: SDRL) provides further information regarding the
Revolving Credit Facility (as defined herein) and certain other information
being delivered to potential investors in connection with the offering of the
Notes (as defined herein).
Revolving Credit Agreement
On July 11, 2023, Seadrill and its wholly owned subsidiary Seadrill Finance
Limited ("Seadrill Finance"), an exempted company limited by shares incorporated
under the laws of Bermuda, entered into the Senior Secured Revolving Credit
Agreement (the "New Credit Agreement") with certain lenders and issuing banks
party thereto, J.P. Morgan SE as the administrative agent for the lenders, and
GLAS Trust Company LLC as the common security agent. Subject to the conditions
set forth below, the New Credit Agreement will establish a revolving credit
facility for Seadrill Finance, as the borrower, with commitments for revolving
borrowings of $225.0 million, a letter of credit sublimit of $50.0 million, and
an accordion feature of up to $100.0 million (the "Revolving Credit Facility").
All obligations of Seadrill Finance under the New Credit Agreement, certain cash
management obligations, certain letter of credit obligations, and certain swap
obligations are unconditionally guaranteed, on a joint and several basis, by
Seadrill and certain of its direct and indirect subsidiaries (together with
Seadrill Finance and Seadrill, the "Credit Parties"). All such obligations,
including the guarantees of the Revolving Credit Facility, are secured by senior
priority liens on substantially all assets of, and the equity interests in, each
Credit Party (to the extent owned by another Credit Party), including certain
rigs owned by the Credit Parties as of the effective date of the New Credit
Agreement (the "Effective Date"), along with certain other rigs in the future
such that rigs constituting part of the collateral shall generate at least 80%
of the revenue of all rigs (other than certain non-core rigs) owned by Seadrill
and its restricted subsidiaries and the ratio of the aggregate rig value of the
collateral rigs to the commitments under the Revolving Credit Facility is at
least 3.50 to 1.00, in each case, subject to certain exceptions and limitations
described in the New Credit Agreement.
The loans outstanding under the Revolving Credit Facility bear interest at a
rate per annum equal to the applicable margin plus, at Seadrill Finance's
option, either: (i) the Term SOFR (as defined in the New Credit Agreement) plus
0.10%