Seadrill Limited — Capital/Financing Update 2020

Sep 15, 2020

SDRL - Seadrill Announces Forbearance Agreements

SDRL - Seadrill Announces Forbearance Agreements

Hamilton, Bermuda, September 15, 2020 - Seadrill Limited ("Seadrill" or the

"Company") (OSE:SDRL, OTCQX:SDRLF) announces that it has entered into

forbearance agreements with certain creditors in respect of the group's senior

secured credit facility agreements, senior secured notes, and guarantee facility

agreement.

Pursuant to the forbearance agreements, the consenting creditors have agreed not

to exercise any voting rights to, or otherwise take actions, in respect of

certain events of default that may arise under the  senior secured credit

facility agreements, senior notes and guarantee facility agreement as a result

of the group not making certain interest payments falling due in September 2020

under the group's senior secured credit agreements until and including the

earlier of 29 September 2020 and any termination of the forbearance agreements.

Forbearance has not yet been agreed with respect to termination events that may

arise under the Company's leasing agreements in respect of the West Hercules,

West Linus and West Taurus. Without a forbearance in respect of these leasing

agreements, a non-payment of interest under the agreements covered by the

forbearance agreements that have been agreed could result in enforcement of a

cross-default under such leasing agreements.

The purpose of the forbearance agreements is to allow the Company and its

stakeholders more time to negotiate on the head terms of a comprehensive

restructuring of its balance sheet. Such a restructuring may involve the use of

a court-supervised process. The Company continues to evaluate capital structure

proposals from its financial stakeholders; whilst no agreement has been reached

at this point it is expected that potential solutions will lead to significant

equitization of debt which is likely to result in minimal or no recovery for

current shareholders.

The Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey,

Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor.

Slaughter and May has been engaged as corporate counsel and Advokatfirmaet

Thommessen AS is serving as Norwegian counsel.

FORWARD LOOKING STATEMENTS

This news release includes forward looking statements. Such statements are

generally not historical in nature, and specifically include statements about

the Company's plans, strategies, business prospects, changes and trends in its

business, the markets in which it operates and its restructuring efforts. These

statements are made based upon management's current plans, expectations,

assumptions and beliefs concerning future events impacting the Company and

therefore involve a number of risks, uncertainties and assumptions that could

cause actual results to differ materially from those expressed or implied in the

forward-looking statements, which speak only as of the date of this news

release. Consequently, no forward-looking statement can be guaranteed. When

considering these forward-looking statements, you should keep in mind the risks

described from time to time in the Company's regulatory filings and periodical

reporting. The Company undertakes no obligation to update any forward looking

statements to reflect events or circumstances after the date on which such

statement is made or to reflect the occurrence of unanticipated events. New

factors emerge from time to time, and it is not possible for the Company to

predict all of these factors. Further, the Company cannot assess the impact of

each such factor on its business or the extent to which any factor, or

combination of factors, may cause actual results to be materially different from

those contained in any forward looking statement.

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

seadrill@hawthornadvisors.com