Bermuda-based offshore drilling rig provider Seadrill Ltd. hired Houlihan Lokey Inc. and Morgan Stanley to advise it on restructuring its debt worth $11bn. The process is expected to gain traction by June 2016.
According to sources, the company might opt for a debt-to-equity swap and a subsequent equity infusion of $1bn.
Seadrill, which provides rig services to upstream oil and gas companies, has seen a decline in its revenue as its clients have cut capex/drilling budgets. The company has seen declining day rates and contract expiry on some of its vessels.
Source: Zacks Investment Research