Hamilton, Bermuda, April 29, 2016 - Sevan Drilling ("the Company"), a Seadrill Limited subsidiary, announces today that it has reached agreement with its banking group to amend certain financial covenants.
These amendments are part of a broader package of measures Seadrill Limited, our major shareholder, is undertaking to refinance and recapitalize the business.
The covenant amendments extend to 30 June 2017 and relate to the following:
A reset of the leverage covenant.
A revised definition of the Equity Ratio to exclude the impact of any change to the market value of our rigs.
A suspension of the provision that allows lenders to receive a prepayment if rig values decline below a minimum value relative to the loan balance outstanding.
For additional detail on the terms of the agreement, please refer to our Annual Report filed on April 28th 2016.
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 and trends in its business and the markets in which it operates. 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. Consequently, no forward-looking statement can be guaranteed. 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 the Company 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 information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.