London, United Kingdom, September 12, 2017 - Seadrill Partners LLC ("Seadrill Partners" or the "Company") announces today that the Company's largest shareholder, Seadrill Limited ("Seadrill"), has entered into a restructuring agreement with secured lenders, bondholders and a consortium of investors. The agreement defers the maturity of secured bank debt by five years with no amortization payments until 2020, converts bonds to equity and delivers new capital to Seadrill.
To implement the restructuring agreement, Seadrill and certain of its subsidiaries have filed prearranged chapter 11 cases in the Southern District of Texas together with the agreed restructuring plan. As part of the chapter 11 cases, "first day" motions were filed that, when granted, will enable day-to-day operations to continue as usual, including the provision of management services to Seadrill Partners. For additional information please refer to Seadrill Limited's Form 6K filed today.
Seadrill Partners' recently announced amendments to certain credit facilities have successfully insulated the Company and its consolidated entities from events of default resulting from Seadrill Limited's use of chapter 11 proceedings to implement its restructuring plan. Seadrill Partners did not file chapter 11 cases, and we expect business operations to be largely unaffected by Seadrill's chapter 11 filings.
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, trends in its business and the markets in which it operates and insulation from Seadrill Limited's restructuring. 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. Important factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to the performance of the drilling rigs in the Company's fleet; delay in payment or disputes with customers; fluctuations in the international price of oil; changes in governmental regulations that affect the Company or the operations of the Company's fleet; increased competition in the offshore drilling industry; hire rates and factors affecting supply and demand for drilling rigs; the financial condition of the Company's existing or future customers; and general economic, political and business conditions globally and the effects of Seadrill Limited's restructuring. Consequently, no forward looking statement can be guaranteed. When considering these forward looking statements, you should keep in mind the risks described from time to time in the Company's filings with the SEC, including its Annual Report on Form 20-F (File No. 001-35704).
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 us 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.