Valaris Executes $500M DIP Term Loan Credit Agreement

Source: www.gulfoilandgas.com 9/28/2020, Location: Europe

Valaris has announced that, on September 25, 2020, the Company entered into a $500 million Debtor-in-Possession ('DIP') term loan agreement with certain of its noteholders. This agreement was executed after receiving final approval to access the DIP term loan facility from the United States Bankruptcy Court for the Southern District of Texas. Including over $180 million of cash on hand as of September 25, 2020, the Company has over $680 million of total liquidity available. Valaris also received final approval for the First Day Motions to continue to operate in the ordinary course of business.

'With access to this additional liquidity, I am even more encouraged that we will be able to support our continued operations uninterrupted throughout the Chapter 11 process and take advantage of a market recovery over the long term,' said Tom Burke, President and Chief Executive Officer of Valaris. 'I am glad to work closely with a group of our noteholders focused on what is best for Valaris and its future, including creating one of the best balance sheets in the industry.'

Burke continued, 'I want to thank our stakeholders, including our valued customers, vendors and particularly our employees, for their continued support throughout this process as we build a strong financial foundation for the Company.'

Additional Information

As previously announced, on August 19, the Company voluntarily filed for Chapter 11 to implement a financial restructuring on the terms set forth in the Restructuring Support Agreement (the 'RSA') and Backstop Commitment Agreement (the 'BCA'). Approx. 72% of the Company’s noteholders have signed on to support the restructuring.

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.


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