Seadrill says sorry

John Fredriksen’s Seadrill has moved to repair damage stemming from an unsuccessful $1bn bond issue.

Oslo and Nasdaq-listed Seadrill today launched a voluntary incentive payment offer to convert any or all of a $650m convertible due in 2017.

Seadrill, Fredriksen’s most profitable company, made the move amid an apology to bondholders who were impacted by the proposed bond issue and subsequent cancellation last week.

“The board bears significant responsibility to all stakeholders and never intends to harm any of the company's loyal supporters, however, the board was left with the difficult decision to accept an unattractive deal or create this unfortunate situation,” Seadrill said.

It added: “The company and the board will not be forced to transact in any market at unfavorable terms, therefore saw cancellation as the only viable alternative. 

“In light of this the board has decided to launch a new voluntary incentive payment offer which will not be contingent on the completion of any other transaction in order to counter the negative effects of last week's events.

“We look forward to putting this unfortunate situation behind us and continue our innovative and cost effective funding strategy.”

Seadrill had intended to use cash from the abandoned bond issue to help pay for newbuildings.

It had appointed ABG Sundal Collier, BNP Paribas and Deutsche Bank to act as joint bookrunners for the offering.

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