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Norwegian oilfield service firm, Seadrill Ltd (SDRL - Snapshot Report) has priced senior unsecured notes worth $500 million. The notes, carrying an interest rate of 6.125%, are expected to mature by 2020.

The proceeds from the notes are expected to be utilized to pay debt, acquire units for drilling operations and for other corporate activities. Seadrill added that the notes will be offered to a small number of selected institutional investors both in and out of the United States. Seadrill expects the offering to close by Sep 25, 2013.

Based in Hamilton, Bermuda, Seadrill renders services related to offshore drilling activities, which include exploration, completion and maintenance of offshore wells; production and well maintenance; and well services to customers worldwide. The company is currently operating 64 units, which include jack-up rigs, semi-submersible rigs, drill ships and tender rigs.

On Aug 28, Seadrill reported better-than-expected second-quarter 2013 results. Adjusted earnings per share came in at 69 cents, breezing past the Zacks Consensus Estimate of 61 cents on the back of record net income and excellent result from operations. However, earnings fell below the year-ago adjusted quarter result of 88 cents per share due to loss of revenues from the tender rig asset sale.

Seadrill currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at oil and drilling contractors like Pacific Drilling SA (PACD - Snapshot Report), Parker Drilling Co. (PKD - Snapshot Report) and Tesco Corporation (TESO - Snapshot Report) that offer better prospects. All the stocks sport a Zacks Rank #2 (Buy).

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