NEW YORK (TheStreet) -- SeaDrill (SDRL) was falling -4.9% to $37.67 Tuesday after launching $1 billion 2019 convertible bond and a voluntary incentive payment offer to convert the existing $650 million 3.375% convertible bond due 2017.
The senior, unsecured bonds will be convertible into common shares. The bonds are expected to have an annual coupon range of 2% to 2.5% payable semi-annually in arrear, and have a conversion premium of 30% to 35% over the reference share price.
The bonds are expected to be issued on or around July 16, 2014.
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TheStreet Ratings team rates SEADRILL LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEADRILL LTD (SDRL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: