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Seadrill Partners defers interest payments with lenders

Offshore driller Seadrill Partners has announced that it has entered into a 30-day grace period with its lenders to defer around $49m interest payment under its Term Loan B (TLB) due on June 30 to July 30.

Seadrill said the agreement provided the company with the flexibility to address its 2020 debt maturities by paying down around $230m in secured bank debt. The vessels securing the bank debt will become part of the collateral securing the TLB after closing the amendment of the credit agreement.

The lenders representing over 70% of TLB principal amounts outstanding have agreed to support the transaction and to provide a super senior loan in lieu of receipt of cash interest with respect to the interest payment.

According to Seadrill Partners, a $69m super senior loan maturing in February 2021 will be created, assuming 100% participation of the TLB lenders.

Seadrill Partners currently owns eight drilling units including four drilling rigs and four drillships.

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Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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