Norwegian drilling giant Seadrill has cancelled a five-year $1billion maturity convertible bond issue due to an overnight fall in its share price.
Shares in Seadrill dropped more than 5% at the end of the trading day to $37.53 each in New York and 232.80 kroner in Oslo.
“Although the order book was covered, the adverse price movement led to an unattractive conversion price for the issue,” Seadrill said in a statement.
Despite the sudden dive the company is set to close the month with a “strong” cash balance of around $1.5billion, it added.
“In light of this strong liquidity position the company did not view this transaction as a requirement, but rather as an opportunity,” Seadrill said.
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