Diamond Offshore has entered right into a plan help settlement with holders of over 70% of every of its senior unsecured notes and revolving credit score facility loans concerning a monetary restructuring transaction that may considerably deleverage the Company’s stability sheet and place the Company for future progress.
As beforehand disclosed within the Company’s press launch dated April 27, 2020, Diamond and sure of its subsidiaries filed voluntary petitions for reorganization beneath chapter 11 of the U.S. Bankruptcy Code within the U.S. Bankruptcy Court for the Southern District of Texas.
The plan help settlement outlines a complete plan for deleveraging the Company’s stability sheet by way of the equitization of its senior unsecured notes, leading to a discount of over $2.1 billion of funded indebtedness. In addition, sure holders of senior unsecured notes have agreed to speculate as much as $110 million of recent capital within the type of first lien, final out exit notes, whereas sure holders of revolving credit score facility loans have agreed to supply exit financing amenities within the type of a $300 million to $400 million first lien, first out revolving credit score facility and a $100 million to $200 million first lien, final out time period mortgage facility.
Proceeds of the brand new exit financing amenities will fund plan distributions and supply enough liquidity for Diamond to function efficiently post-emergence. To that finish, the Company is in search of to emerge from the Chapter 11 Cases as shortly because the Court’s schedule and the requisite discover intervals will allow. For further info, please discuss with the Company’s Current Report on Form Eight-Ok filed together with this announcement.
The agreed plan was developed over the course of a number of months of detailed discussions with the Company’s key stakeholders, and the plan is designed to make sure that Diamond can proceed to function its differentiated fleet of offshore drilling rigs in a secure, dependable, and environment friendly method in what continues to be a challenged market. After the restructuring, Diamond could have a powerful money place with enough liquidity to learn from an eventual market restoration.
Marc Edwards, Chairman, President and Chief Executive Officer, mentioned “The complete plan help settlement we signed as we speak raises new capital and is overwhelmingly supported by our banks and our bondholders. We stay up for rising with a stronger stability sheet, considerably much less debt, and elevated monetary flexibility. This settlement is a testomony to the market’s perception in Diamond and our world class staff. With our improved capital construction, we will probably be in a powerful place to capitalize on market alternatives as they emerge.”
Based in Houston, Diamond Offshore is a frontrunner in offshore drilling, offering contract drilling providers to the vitality business across the globe with a complete fleet of 13 offshore drilling rigs, consisting of 9 semisubmersibles and 4 dynamically positioned drillships.
(Source: Diamond Offshore – Image: Ocean Endeavor semi-submersible off the coast of Egypt within the Mediterranean Sea/Rigsby Hull from the documentary movie Ocean Endeavor)
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