Has Mr. Fredriksen Tapped Out the Banks?

On Tuesday, Seadrill announced that it had secured commitments for a senior secured credit facility in the amount $1.5 billion from a group of commercial lending institutions and export credit agencies.

The proceeds will be used to refinance the existing $1.0 billion bridge loan facility with the excess, a mere $500 million, to be utilized for general corporate purposes. The facility will be secured by 1st priority mortgages on two ultra-deepwater semi-submersible drilling rigs, one deepwater drillship and one jack-up rig.

While the size of the loan is extraordinary, risk, as you might expect, was carefully managed

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