Offshore driller Seadrill Limited has reached a deal with the lenders under the West Eminence loan and the requisite majority of lenders under all of its other bank loans to extend the loan maturity date.
According to the company’s statement on Wednesday, the maturity date of the loan related to the West Eminence drilling rig will be extended from December 31, 2016, to April 30, 2017.
“Good progress has been made on the overall terms and structure of an agreement with our banks that will re-profile all secured credit facilities to mature in the period from 2020 to 2023, reduce our fixed amortization obligations and amend financial covenants. We have initiated engagement with bondholders and potential providers of new capital on the other key elements of our restructuring plan,” Seadrill Limited said.
The company expects to conclude the restructuring by the end of April 2017. “Extending the West Eminence facility will provide us with sufficient time to conclude these negotiations,” it said.