SFL Corporation Ltd (SFL)

[eFinanceMarkets]

$SFL Ship Finance +5% after signing restructuring deal with Seadrill

Ship Finance International (SFL +4.7%) is higher on news of its restructuring agreement in connection with Seadrill's Chapter 11 restructuring.

As part of SDRL's plan, SFL and three subsidiaries which own and lease the West Linus, West Hercules and West Taurus drilling rigs to Seadrill agree to reduce the contractual charter hire by ~30% for five years beginning next year, with the reduced amounts added back in the period thereafter.

The banks who finance the three rigs agree to extend the loan period by roughyl four years, with reduced amortization in the extension period compared to today's level.