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