OSLO, Jan 22 (Reuters) - Offshore driller Seadrill will provide a guarantee for its subsidiary North Atlantic Drilling’s 1.5 billion Norwegian crowns ($197.16 million) bond maturing in 2018, the two companies said on Thursday.
The guarantee is given in exchange for some amendments to the bond covenant package, replacing North Atlantic’s current covenants with Seadrill’s financial covenants from Seadrill’s NOK denominated bonds, North Atlantic said in a statement.
An amendment process for North Atlantic Drilling’s secured credit facilities, whereby Seadrill will provide a guarantee, has also been launched.
“The Company’s lenders have been supportive thus far and we expect successful conclusion of this amendment in the weeks to come,” it said. ($1 = 7.6080 Norwegian krones) (Reporting by Stine Jacobsen, editing by Terje Solsvik)