Seadrill Limited sells T-16 tender rig to Seadrill Partners LLC

Seadrill Limited sells T-16 tender rig to Seadrill Partners LLC

HAMILTON, Bermuda -- Seadrill Limited has entered into an agreement to sell the company that owns the tender rig T-16 to Seadrill Partners LLC for a total purchase price of $200 million, less approximately $93 million of debt outstanding under the credit facility secured by the T-16.

Seadrill Partners will acquire the company that owns the T-16 in exchange for approximately $107 million in unregistered common units that Seadrill Partners will issue to Seadrill Limited. The number of common units to be issued to Seadrill Limited will be 3,310,622, at a price of $32.29 which is based on the ten-day volume weighted average closing price ending on October 10, 2013 for Seadrill Partners' common units. The transaction is expected to close within October 2013.

The T-16 commenced operations in September 2013 under a five-year contract with Chevron in Thailand at an initial dayrate of $115,500. The debt secured by the T-16 matures in December 2017 and has an interest rate of LIBOR plus a margin of 3.25% per annum.