Seadrill Ltd (SDRL)

[MisterEC]

Seadrill's Debt-For-Equity SwapSeadrill's Debt-For-Equity Swap
Summary


•Seadrill entered into a $55M debt-for-equity swap last week.

•The company has $10.9B in debt at junk levels. $2.2B in principal payments come due next year.

•Another debt-for-equity swap at share prices of $3 or lower could double outstanding shares and cause major dilution.

•Investors should avoid SDRL until the dust settles.