Seadrill Limited, as part of its restructuring plans, has signed and closed an agreement with Archer and its lenders to extinguish approximately USD 253 million in financial guarantees provided by Seadrill in exchange for a cash payment of approximately USD 25 million. The company remains in constructive discussions with Archer and its lenders to extinguish the remaining USD 25 million of financial guarantees in exchange for a cash payment representing 10% of their face value.

As part of Archer’s restructuring plans the Company has also agreed to convert USD 146 million in subordinated loans provided to Archer into a USD 45 million subordinated convertible loan. The subordinated convertible loan will bear interest of 5.5%, matures in December 2021 and have a conversion right into equity of Archer Limited in 2021 based on a strike price of USD 2.083 per share (subject to appropriate adjustment mechanics), which is approximately 75% above the subscription price in Archer’s private placement on February 28, 2017.

Tags: Archer, Seadrill Limited