Past year: ▼ 77%(6.02c – 47.0c USD)
Each one in plain English, with the numbers worked through for a shareholder.
25 Nov 2020debt default or forbearance▼ BadMajor
Seadrill Partners chose not to make a periodic swap payment due 23 November 2020. TLB lenders holding a majority of the loan agreed to forbear from enforcing any resulting defaults or acceleration of the hedging liabilities, effective through the TLB maturity unless a separate unwaived event of default occurs. Nothing in the filing says what happens to unitholders.
4 Aug 2020debt financing▼ BadMajor
An agreement announced on 20 July 2020 with Term Loan B lenders holding over 70% of the loan has closed. A $63.7 million super senior loan maturing February 2021 was created in place of the cash interest payment due 30 June 2020, carrying PIK interest at Libor+1000 bps and a 10% exit premium, and about $230 million of secured bank debt was retired, with those vessels now securing the TLB and super senior loan. The company must complete a recapitalization acceptable to the required lenders by 15 December 2020, which puts a deadline on the restructuring.
6 Sept 2019listing compliance notice▼ BadMajor
The NYSE suspended trading in Seadrill Partners' common units and started delisting proceedings because of the company's low market capitalization. The units are expected to trade over the counter as SDLPF from 6 September 2019, and the company says it will keep filing reports with the SEC and intends to appeal, with delisting procedures suspended pending the appeal.
13 Feb 2018debt financing▼ BadMajor
Seadrill Partners reached agreement with a majority of Term Loan B lenders (over 50% of the amount outstanding) to waive the leverage covenant until the loan matures in February 2021. In return it agreed to a 3% higher margin, a prepayment tied to the outcome of ongoing litigation, adding the West Vencedor to the collateral group, and limits on cash movements outside that group. It takes effect only after consent from secured banks holding over 66 2/3% of each of its three secured bank facilities, which the company expects in coming weeks.
17 June 2015business combination● NeutralMajor
Seadrill Operating LP, now described as 58% owned by Seadrill Partners, agreed to buy the owner of the drillship West Polaris from Seadrill Limited, with closing expected within 7 days. Consideration is $204 million in cash plus $336 million of debt on the rig, with Seadrill Operating funding part of the price through a $50 million sellers' credit due 2021 at 6.5%. The rig works for ExxonMobil in Angola until March 2018 at $653,000 a day, but Seadrill Polaris will pay Seadrill any dayrate above $450,000. Unlike earlier deals, the Board does not intend to raise distributions based on this transaction.
4 Nov 2014business combination▲ GoodMajor
Seadrill Partners agreed to buy the entities owning the drillship West Vela from Seadrill Limited, through its 51%-owned Seadrill Capricorn Holdings, with closing expected within 3 days. The implied price is $900 million less $433 million of debt, and the company's share of the net price after debt is $238 million. The rig is contracted to BP in the U.S. Gulf of Mexico until November 2020 at $565,000 a day, but Capricorn Holdings will pay Seadrill $40,000 a day of dayrate received plus the roughly $44,000 a day mobilization fee, so the effective dayrate is $525,000. Management intends to recommend a fourth-quarter 2014 distribution increase of $0.035 to $0.040 per unit, subject to Board approval; the third-quarter 2014 distribution was already raised to $0.5525, which resolves the earlier open question about Board approval of increases. The filing says the acquisition lifts revenue backlog to $6 billion.
29 Sept 2014capital raising announcement● Neutral
The September offering priced and closed on 29 September 2014: 8,000,000 units at $30.68 each, about $256.3 million gross per the press release. The press release also refers to a concurrent private placement, but this filing gives no buyer or size for it (inference: it is likely Seadrill Limited, as in earlier offerings). Proceeds are for general company purposes. This completes the offering announced on 23 September.
What it means for a shareholder
8.0m new shares at $30.68 to raise about $256m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
23 Sept 2014capital raising announcement● Neutral
Seadrill Partners announced a public offering of 8,000,000 common units, with Morgan Stanley and Barclays as book runners. Proceeds are for general company purposes (which may include acquisitions, repaying debt and working capital), with no named rig purchase. Like the June 2014 offering, this issues new units and dilutes existing holders.
24 June 2014capital raising announcement● NeutralMajor
The June offering was priced and closed on 24 June 2014: 6,100,000 units at $31.41 each, about $200 million gross per the press release. Seadrill Limited bought 3,194,700... correction: Seadrill Limited bought 3,183,700 units at the same price in a private placement. The proceeds are for general company purposes, so this completes the offering announced on 18 June.
What it means for a shareholder
6.1m new shares at $31.41 to raise about $200m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
18 June 2014capital raising announcement● NeutralMajor
Seadrill Partners announced a public offering of 6,100,000 common units, with Seadrill Limited agreeing to buy at least $100.0 million of units privately alongside. Unlike the earlier offerings, the proceeds are for general company purposes (which may include acquisitions, repaying debt and working capital) rather than a named rig purchase. The fleet is now described as four semi-submersibles, two drillships (West Capella and West Auriga) and three tender rigs, which shows the West Auriga deal has completed.
17 Mar 2014capital raising announcement● NeutralMajor
The March offering closed at $30.60 per unit: 10,400,000 units plus 1,560,000 from the underwriters' option, 11,960,000 in total. Seadrill Limited bought a further 1,633,987 units at the same price. The West Auriga acquisition is expected to close within about 30 days.
11 Mar 2014capital raising announcement● NeutralMajor
Seadrill Partners announced a public offering of 10,400,000 common units, with Seadrill Limited agreeing to buy at least $50.0 million of units alongside. The money is to fund its share of the net price for the West Auriga acquisition. This continues the pattern of paying for Seadrill rig purchases with new units, which dilutes existing holders.
11 Mar 2014business combination▲ GoodMajor
Seadrill Partners agreed to buy the entities owning the drillship West Auriga from Seadrill Limited, through its 51%-owned Seadrill Capricorn Holdings. The implied price is $1.24 billion less $443.1 million of facility debt, and the company's share of the net price after debt is $355.4 million. The rig is contracted to BP in the U.S. Gulf of Mexico until October 2020 at $565,000 a day. Management intends to recommend a quarterly distribution increase of $0.0325 to $0.0375 per unit from the quarter ending June 30, 2014, subject to closing and Board approval. This is described as the company's fifth acquisition since its October 2012 IPO.
9 Dec 2013capital raising announcement● NeutralMajor
The December unit offering closed at $29.50 per unit, with the underwriters taking their extra 1,680,000 units, for 12,880,000 units sold in total. Seadrill Limited separately bought 3,394,916 units at the same price. The West Leo and West Sirius acquisitions from Seadrill, through the 30%-owned Seadrill Operating LP and 51%-owned Seadrill Capricorn Holdings LLC, are expected to close within about 30 days. This completes the funding step announced on 2 December.
2 Dec 2013capital raising announcement● NeutralMajor
Seadrill Partners announced a public offering of 12,900,000 common units, with Seadrill Limited also agreeing to buy $50.0 million of units at the offering price. The money is meant to fund its share of the cash price for the West Leo and West Sirius rigs, which are being bought from Seadrill. Existing unitholders are diluted by the new units.
9 May 2013business combination▲ GoodMajor
Seadrill Partners agreed to buy the companies that own and operate the tender rig T-15 from its parent Seadrill Limited for $210 million, less about $100 million of debt on the rig. The balance is funded by about $110 million of vendor financing from Seadrill. The rig is contracted for five years with Chevron in Thailand at a dayrate of $115,500, and management says it would recommend a quarterly distribution increase of $0.0275 to $0.0325 per unit (about 8%) if the deal closes and the Board approves it.
