On February 13, 2018, Seadrill Partners LLC (SDLP) reached an agreement with the majority of lenders on an amended Term Loan B credit agreement (TLB Facility) to waive the leverage covenant until the maturity of the loan in February 2021. Concurrent with the TLB waivers, SDLP has sought waivers from three of its other secured facilities (the Secured Facilities). Orrick represented the Conflicts Committee of SDLP (the Conflicts Committee) in relation to both the waivers under the Secured Facilities and the amendments under the TLB.
The amendments to the TLB include increasing the applicable margin by 3%, a par prepayment contingent on the successful outcome of certain ongoing litigation, and adding the West Vencedor as collateral and certain amendments relating to cash movements outside of the TLB collateral group. The agreement required greater than 50% of the TLB lenders’ approval, and will become effective upon receiving consent from each of the Secured Facilities. The bank’s credit approval process is well advanced and expected to conclude in the coming weeks.
In July 2017 Orrick represented the Conflicts Committee in SDLP’s successful amendments to the Secured Facilities, which insulated SDLP from the restructuring efforts of its parent company, Seadrill Limited. Seadrill Limited subsequently filed for Chapter 11 protection in September 2017. Orrick continues to represent the Conflicts Committee in connection with the Chapter 11 bankruptcy and the associated restructuring of up to $14 billion of Seadrill Limited debt.
The Orrick team was led by David Ronn and Stephen Phillips and included Andrew Mattei, Ron D’Aversa, Steve Foresta, Laura Metzger, Alan Knoll, Ryan Giggs, Debra Felder, Mason Harry, and Siobhan Sheridan.