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Get filing alertsSeadrill refinances $575M of 2030 notes with $700M 6.75% senior notes due 2034
Filed June 30, 2026 · Period ending June 30, 2026 · ~1 min read
Key Changes
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Issued $700M of 6.750% senior notes due 2034 and used proceeds to fully redeem outstanding 8.375% notes due 2030 (approximately $575M principal), extending debt maturity and reducing interest costs by ~160 basis points.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Increased revolving credit facility from $225M to $300M, providing additional liquidity cushion; facility remains undrawn to date.
Item 8.01 — Other Events verify on EDGAR → -
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New notes callable starting July 2029 at premiums declining from 103.375% to par by 2031; noteholders have change-of-control put right at 101% of principal.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Indenture restricts additional debt, liens, distributions, asset sales, and affiliate transactions unless notes achieve investment grade ratings from two agencies.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
Seadrill completed a debt refinancing that extends maturities and reduces borrowing costs. The company issued $700 million of 6.750% senior notes due 2034 and immediately used the proceeds to redeem all outstanding 8.375% notes due 2030 (approximately $575 million principal). The transaction pushes out the maturity by four years and cuts the coupon by roughly 160 basis points, improving the company's debt profile.
Concurrently, Seadrill expanded its revolving credit facility from $225 million to $300 million, adding liquidity headroom without drawing on the line. The new notes include standard protections: callable starting mid-2029 at declining premiums, change-of-control put rights at 101% of par, and covenants restricting additional leverage and asset dispositions.
These terms are typical for offshore drilling credits and provide noteholders with downside safeguards. For equity holders, the refinancing removes near-term maturity pressure and lowers cash interest expense, freeing capital for operations or fleet investments as the offshore market recovers.
Section-by-Section Diff
Event · Item 8.01 — Other Events
Seadrill redeemed all outstanding 2030 Notes using proceeds from new debt offering and increased revolving credit facility to $300M.
Added in current filing · verify on EDGAR →
On June 30, 2026, in connection with the issuance of the Notes, the Company (i) irrevocably deposited (or caused to be deposited) a portion of the net proceeds from the Offering with the trustee under the 2030 Notes Indenture in an amount sufficient to redeem all of the outstanding 2030 Notes and fund the payment of the principal, premium and interest to, but excluding, the applicable redemption date for such outstanding 2030 Notes, together with all other sums payable under the 2030 Notes Indenture and (ii) notified the trustee under the 2030 Notes Indenture that the condition under the Redemption Notice was satisfied. As a result (and at the time) of such deposit, the 2030 Notes Indenture was satisfied and discharged in accordance with its terms.
Seadrill deposited proceeds from a new debt offering to fully redeem its 8.375% Senior Secured Second Lien Notes due 2030, satisfying and discharging the indenture. The redemption included 10% of the notes at 103% of principal and the remainder at 100% plus a make-whole premium, along with accrued interest. As of March 31, 2026, approximately $575 million principal amount was outstanding.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On or after July 15, 2029, the Issuer may, at its option, redeem all or any portion of the Notes, at once or over time, at the redemption prices set forth below, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date, and Additional Amounts (as defined in the Indenture), if any, calculated by the Issuer. The following prices are for Notes redeemed during the 12-month period commencing on July 15 of the years set forth below, and are expressed as percentages of principal amount: Redemption Year | Price | 2029 | 103.375 % | 2030 | 101.688 % | 2031 and thereafter | 100.000 %
The notes are callable starting July 15, 2029 at premiums declining from 103.375% in 2029 to par in 2031. Before 2029, the issuer may redeem at par plus a make-whole premium, or up to 40% of the original principal with equity offering proceeds at 106.750% of par.
Added in current filing · verify on EDGAR →
The Indenture contains covenants that, among other things, restrict the Company’s ability and the ability of certain of its subsidiaries to: (i) incur additional debt and issue certain preferred stock; (ii) incur or create liens; (iii) make certain distributions, investments and other restricted payments; (iv) sell or otherwise dispose of certain assets; (v) engage in certain transactions with affiliates; and (vi) merge, consolidate, amalgamate or sell, transfer, lease or otherwise dispose of all or substantially all of the Company’s assets.
The indenture restricts Seadrill's ability to incur additional debt, create liens, make distributions and investments, dispose of assets, transact with affiliates, and merge or sell substantially all assets. These covenants are suspended if the notes achieve investment grade ratings from at least two agencies with no continuing default.
Added in current filing · verify on EDGAR →
Upon the occurrence of certain Change of Control Triggering Events (as defined in the Indenture), the Issuer may be required to make an offer to repurchase all of the Notes then outstanding at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but excluding, the purchase date, and Additional Amounts, if any.
If a change of control triggering event occurs, the issuer must offer to repurchase all outstanding notes at 101% of principal plus accrued interest. This provides noteholders with downside protection in the event of a corporate control change.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 1, 2026 · How we verify