VAL - Valaris: Here's The Wipeout
Valaris (VAL) has just announced that it managed to reach consensus with certain creditors regarding its restructuring and published the restructuring support agreement. The company reached agreement with approximately 50% of its noteholders and plans to do the following:
- Equitize its revolving credit facility and unsecured notes.
- Obtain DIP financing of $500 million.
- Proceed with a “fully backstopped rights offering to noteholders for $500 million of new secured notes”.
- Effectively cancel current equity.
The restructuring support agreement implies that the new equity will be distributed as follows:
- Credit facility lenders will receive