Valaris plc Announces Expiration of Joinder Period

Rhea-AI Summary

Valaris plc (OTC: VALPQ) announced the expiration of the joinder period under its Restructuring Support Agreement (RSA) and Backstop Commitment Agreement (BCA). A total of 72% of its senior noteholders have executed these agreements. Key components of the RSA and BCA include equitization of pre-petition credit facilities and unsecured notes, a $500 million backstopped rights offering for new secured notes, and the potential cancellation of existing equity interests. Legal and financial advisors for the restructuring process have been appointed, and court-related information is accessible online.

Positive

• 72% of senior noteholders have consented to the RSA and BCA, indicating strong support for the restructuring.
• The restructuring plan includes a fully backstopped rights offering that may strengthen the company's capital structure.

Negative

• The restructuring involves the cancellation of existing equity interests, which could dilute current shareholders' stakes.

LONDON, Sept. 15, 2020 /PRNewswire/ -- Valaris plc (OTC: VALPQ) ("Valaris" or the "Company") today announced that the joinder period under its Restructuring Support Agreement (the "RSA") and Backstop Commitment Agreement (the "BCA") has expired and that holders of 72% in aggregate principal amount of its senior notes (the "Consenting Noteholders") executed the RSA and BCA prior to expiration.

The RSA and BCA contemplate, among other items, the full equitization of the Company's pre-petition revolving credit facility and unsecured notes, a fully backstopped rights offering to noteholders for $500 million of new secured notes, the effective cancellation of existing equity interests in the Company in exchange for, in certain circumstances, warrants for post-emergence equity and payment of trade claims in full in cash.

Kirkland & Ellis LLP and Slaughter and May are serving as legal advisors to Valaris in connection with the restructuring. Lazard Ltd. is serving as Valaris' investment banker and Alvarez & Marsal North America LLC as its restructuring advisor. Kramer Levin Naftalis & Frankel LLP and Akin Gump Strauss Hauer & Feld LLP are serving as legal advisors to the Consenting Noteholders, and Houlihan Lokey Inc. is serving as financial advisor.

Court filings and other information related to the Court-supervised proceedings are available at a website administered by the Company's claims agent, Stretto, http://cases.stretto.com/Valaris.  Questions should be directed to our dedicated restructuring hotline 855-348-2032 (Toll-Free) or +1 949-266-6309 (International).

About Valaris plc

Valaris plc (OTC: VALPQ) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. With an unwavering commitment to safety and operational excellence, and a focus on technology and innovation, Valaris was rated first in total customer satisfaction in the latest independent survey by EnergyPoint Research - the ninth consecutive year that the Company has earned this distinction. Valaris plc is an English limited company (England No. 7023598) with its corporate headquarters located at 110 Cannon Street, London EC4N 6EU. To learn more, visit our website at www.valaris.com.

Media Contact

Dana Gorman / Sydney Isaacs
Abernathy MacGregor
+1 212-371-5999

Investor Contact

Darin Gibbins
Vice President – Investor Relations and Treasurer
+1 713-979-4623

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SOURCE Valaris plc

FAQ

What is the significance of the 72% agreement among Valaris plc senior noteholders?

The 72% agreement indicates substantial support for the restructuring efforts, which is crucial for the company's financial stability.

How much is Valaris plc's new secured note offering under the restructuring plan?

Valaris plc is offering $500 million in new secured notes as part of its restructuring plan.

What will happen to existing equity interests in Valaris plc?

Existing equity interests in Valaris plc may be cancelled, potentially affecting current shareholders.

Who is advising Valaris plc during its restructuring process?

Valaris plc is advised by Kirkland & Ellis LLP, Slaughter and May, Lazard Ltd., and Alvarez & Marsal North America LLC.

Where can I find more information regarding Valaris plc's court proceedings?

Information regarding Valaris plc's court proceedings can be found on their claims agent's website at http://cases.stretto.com/Valaris.