Buy
Re: SFL - Signing of Restructuring Agreement with Seadrill Limited
As a creditor(SFL), additional equity capital added by Lessee(SDL) is always a positive. SFL not called on to pay out on credit guarantees. Getting some lease payments spread over longer period means continue to generate some revenue. Overall, settlement eliminates strongest downside risk for SFL. SFL continues to diversify shipping fleet. Stretching this out buys time and extracts more cash from these rigs before they are scrapped. Sounds like current dividend level is sound.