Skip to content
Subscriber Only

Seadrill Seen Needing $1 Billion in Equity to Top Debt Wall

  • Company's fate now in the hands of creditors, Nordea says
  • Seadrill will need to extend maturities, reduce debt payments
Updated on

Seadrill Ltd., the offshore driller battered by the collapse in crude prices, is approaching a “debt wall” that may force it to sell new shares and renegotiate terms with bond investors and banks by the end of the year, according to Nordea Bank AB.

Hamilton, Bermuda-based Seadrill, controlled by billionaire John Fredriksen, is facing a funding gap of at least $2.5 billion through 2018, Janne Kvernland, an Oslo-based analyst at Nordea, said in a report. The company’s refinancing will probably include an equity issue of about $1 billion, she said. That’s equal to its current market value.