Seadrill and Ship Finance International Limited have entered into a sale and leaseback transaction in which Seadrill sells the jack-up rig Seadrill 3 for a consideration of US$ 210 million. At the same time Seadrill 3 has been leased back to Seadrill for a 15 year period.
Seadrill has in addition a right to repurchase the rig after three years or on five uneven anniversaries thereafter until the end of the charter. The exercise price after three years is US$ 135.5 million, decreasing to US$ 60 million at the end of the 15 year charter.
The annual lease payment for the first three years will total US$ 41.1 million. For the subsequent four year period, the annual lease payment will be US$ 18.8 million. For the remaining eight year charter period, the agreed annual lease payment is approximately US$ 14.9 million. In addition, Ship Finance will after year three receive five percent of the adjusted operating profit given that the operating profit has reached certain threshold levels.
CEO in Seadrill Management AS Kjell E Jacobsen states: "This deal is an important part of Seadrill's financing program that gives the Company an increased financial flexibility."
Analyst contact:
Jim Dåtland, Investor Relations Manager +47 51 30 99 19
Media contact:
Alf C Thorkildsen, Chief Financial Officer +47 51 30 99 19
Seadrill Limited
Hamilton, Bermuda
July 3, 2006