v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
The table below sets out our debt agreements as of June 30, 2026 and December 31, 2025:
(In $ millions)June 30,
2026		December 31,
2025
$700 million senior bond
700 — 
$575 million secured bond
— 575 
Unsecured senior convertible bond50 50 
Total principal debt 750 625 
Premium on bond issuance— 1 
Less: debt issuance costs(13)(13)
Total debt 737 613 
$700 million senior bond
On June 30, 2026, Seadrill Finance Limited ("Seadrill Finance") issued $700 million in aggregate principal amount of 6.750% Senior Notes due 2034 (the “2034 Notes”) in an offering conducted pursuant to Rule 144A and Regulation S under the Securities Act. The 2034 Notes will mature on July 15, 2034, and interest on the 2034 Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2027. The 2034 Notes are fully and unconditionally guaranteed, jointly and severally, by the Company and certain subsidiaries of the Company that are guarantors under the Credit Agreement (as defined below), and in the future by certain subsidiaries of the Company that become borrowers or guarantors under the Credit Agreement or any other syndicated credit facility or capital markets debt in an aggregate principal amount in excess of a certain amount.
$575 million secured bond
In July 2023, Seadrill Finance issued $500 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 in an offering conducted pursuant to Rule 144A and Regulation S under the Securities Act. In August 2023, Seadrill Finance issued an additional $75 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 maturing on August 1, 2030 (together the "2030 Notes").

On June 30, 2026, in connection with the issuance of the 2034 Notes, Seadrill Finance satisfied and discharged the indenture governing the 2030 Notes (the "2030 Notes Indenture") in accordance with its terms. During the second quarter of 2026, in connection with the extinguishment of the 2030 Notes, the Company recognized a loss of $35 million classified within "Other financial and non-operating items" in the Condensed Consolidated Statement of Operations, consisting of the make-whole premium and unamortized issuance costs associated with the 2030 Notes.

Revolving credit facility
On July 27, 2023, Seadrill Limited, along with its subsidiary, Seadrill Finance, as borrower, entered into a Senior Secured Revolving Credit Agreement (as amended from time to time, the "Credit Agreement"), which established a Senior Secured Revolving Credit Facility (the "Revolving Credit Facility"). The commitments under the Revolving Credit Facility, which originally carried a five-year term, became available for drawdown on July 27, 2023. Prior to the Amendment (as defined below), the Revolving Credit Facility permitted borrowings of up to $225 million in revolving credit for working capital and other corporate purposes and included an "accordion feature" allowing Seadrill to increase this limit by up to an additional $100 million, subject to agreement from the incremental lenders. The Revolving Credit Facility is secured by liens on substantially all of the Company's rigs and related assets, other than non-core assets. Seadrill Limited, and certain of its subsidiaries that own collateral or are otherwise material, guarantee the obligations under the Credit Agreement.
On April 3, 2026, Seadrill Limited, along with its subsidiary, Seadrill Finance, entered into Amendment No. 1 to Senior Secured Revolving Credit Agreement to increase the letter of credit sub-limit from $50 million to $100 million.
On June 16, 2026, Seadrill Limited, along with its subsidiary, Seadrill Finance, entered into Amendment No. 2 to Senior Secured Revolving Credit Agreement (the “Amendment”). Upon its effectiveness, the Amendment, among other things, (i) increased the commitments for revolving borrowings from $225 million to $300 million, (ii) extended the stated maturity date of the Revolving Credit Facility from 2028 to 2031, (iii) removed certain immaterial subsidiaries and stacked vessels as guarantors and collateral, respectively, under the Credit Agreement, in accordance with the terms of the Amendment, (iv) modified the commitment fees payable under the Credit Agreement, (v) amended certain restrictive covenants to provide more operational and financial flexibility for Seadrill Limited and its subsidiaries and (vi) provided for the resignation of JPMorgan SE as predecessor administrative agent and for the appointment of JPMorgan Chase Bank, N.A. as successor administrative agent. The Amendment became effective on June 30, 2026, and the commitments thereunder became effective and available to be borrowed, subject to customary borrowing conditions.
The Revolving Credit Facility, at Seadrill Finance’s option, bears interest at a rate of either (i) the applicable Term Secured Overnight Financing Rate (“SOFR”) Rate (as defined in the Credit Agreement) or (ii) the Daily Simple SOFR (as defined in the Credit Agreement), in each case plus an applicable margin. For both the Term SOFR Rate and Daily Simple SOFR, the applicable margin ranges from 2.50% to 3.50% per annum based on Seadrill's credit ratings. As of June 30, 2026, the applicable margin was 2.50% per annum. The Revolving Credit Facility also incurs a commitment fee on undrawn amounts at a rate of 0.50% per annum. No funded borrowings have been made under the Revolving Credit Facility to date.
During the third quarter of 2025, the Company issued a NOK403 million guarantee ($41 million as of June 30, 2026) under the Revolving Credit Facility related to the SFL Hercules Ltd. claim. As of June 30, 2026, outstanding letters of credit and bank guarantees under the Revolving Credit Facility totaled approximately $52 million, which reduced the Company’s available capacity under the Revolving Credit Facility to $248 million.
For further details, please refer to Note 13 – "Commitments and contingencies".
Unsecured senior convertible bond
The $50 million unsecured senior convertible bond (the "unsecured senior convertible bond"), issued on emergence from Chapter 11, has a maturity of August 2028 and bears interest, payable quarterly in cash, at the Term SOFR (as defined in the Note Purchase Agreement dated as of February 22, 2022, as amended (the "Note Purchase Agreement"), plus 6% on the aggregate principal amount of $50 million. The bond is convertible (in full and not in part) into Shares at a conversion rate of 52.6316 Shares per $1,000 principal amount of the bond, subject to certain adjustments set forth in the Note Purchase Agreement relating to the unsecured senior convertible bond. If not converted, a bullet repayment will become due on the maturity date.