Seadrill Ltd (SDRL)

[MisterEC]

Seadrill's Debt For Equity Swap Is Not A Big Deal
Seeking Alpha

Summary


•Seadrill swapped $50M in debt for equity, diluting shareholders.

•This is, however, a tiny drop in the bucket of the wider picture; Seadrill still has $8B in debt due.

•There is still no reason to buy Seadrill unless you think a large commodity rally will happen.

There is absolutely no way that this would make any difference in how the dynamics of Seadrill's restructuring will eventually go. Remember, Seadrill still has $3.7 billion to repay by the end of 2017, and $50 million is about 1% of that.

The debt holders were clearly trying to get out of a position that they thought was losing and where they didn't have a lot of liquidity, and so they got out with a small premium.

Now, if you bought in on the bone head rally, you might feel something.
look how over-bought it was!