Norwegian oilfield service firm,
) has priced senior unsecured notes worth $500 million. The
notes, carrying an interest rate of 6.125%, are expected to
mature by 2020.
The proceeds from the notes are expected to be utilized to pay
debt, acquire units for drilling operations and for other
corporate activities. Seadrill added that the notes will be
offered to a small number of selected institutional investors
both in and out of the United States. Seadrill expects the
offering to close by Sep 25, 2013.
Based in Hamilton, Bermuda, Seadrill renders services related to
offshore drilling activities, which include exploration,
completion and maintenance of offshore wells; production and well
maintenance; and well services to customers worldwide. The
company is currently operating 64 units, which include jack-up
rigs, semi-submersible rigs, drill ships and tender rigs.
On Aug 28, Seadrill reported better-than-expected second-quarter
2013 results. Adjusted earnings per share came in at 69 cents,
breezing past the Zacks Consensus Estimate of 61 cents on the
back of record net income and excellent result from operations.
However, earnings fell below the year-ago adjusted quarter result
of 88 cents per share due to loss of revenues from the tender rig
Seadrill currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at oil and drilling contractors like
Pacific Drilling SA
Parker Drilling Co.
) that offer better prospects. All the stocks sport a Zacks Rank
PACIFIC DRILLNG (PACD): Free Stock Analysis
PARKER DRILLING (PKD): Free Stock Analysis
SEADRILL LTD (SDRL): Free Stock Analysis
TESCO CORP (TESO): Free Stock Analysis Report
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