NEW YORK, NY / ACCESSWIRE / August 18, 2017 / It was a bleeding red day for SeaDrill Limited with shares hitting a new low. More and more traders are becoming aware that the company could be facing an impending bankruptcy filing due to debt and having a hard time finding financing for two new rigs. Shares of Transocean also kept falling for the third straight day despite announcing a big acquisition earlier in the week that one analyst believes is favorable for the company.

RDI Initiates Coverage on:

SeaDrill Limited
https://ub.rdinvesting.com/news/?ticker=SDRL

Transocean Ltd.
https://ub.rdinvesting.com/news/?ticker=RIG

SeaDrill Limited's shares closed down 10.80% yesterday and hit a new low of $0.2775. Credit issues seem to be the culprit for why the stock tanked yesterday, as did its company Seadrill Partners (NYSE:SDLP). Seadrill Partners released amendments to certain credit facilities to insulate the company from Seadrill Limited's restructuring. It's been widely speculated that SDRL will be filing for bankruptcy in the next two weeks. The credit facilities coming are due to new rigs that have been under construction. Seadrill has had a hard time finding refinancing. Matched with the debt the company already has, management believes Chapter 11 proceedings will be inevitable.

Access RDI's SeaDrill Limited Research Report at:
https://ub.rdinvesting.com/news/?ticker=SDRL

Transocean Ltd.'s shares closed down nearly 4% yesterday and hit a new low of $7.27 during intra-day trading. It was the third straight day in a row that the stock declined after announcing earlier in the week that it would be purchasing Songa Offshore for $3.4 billion including debt. The acquisition may have nothing to do with the stock's sliding price but more than the crude oil price has been dropping.

"The issuance of equity is not a complete surprise to us, however, the magnitude of the 32.8% dilution is likely to weigh on the shares in the near-term. Despite the dilution, we view the transaction favorably and believe the footprint in the North Sea is acceptable."

Access RDI's Transocean Ltd. Research Report at:
https://ub.rdinvesting.com/news/?ticker=RIG

Our Actionable Research on Transocean Ltd. (NYSE: RIG) and SeaDrill Limited (NYSE: SDRL) downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com