Plan to Deleverage Balance Sheet by Over $6.5 Billion and Provide $520 Million Capital Injection
London, March 3, 2021 … Valaris plc (OTC: VALPQ) (“Valaris” or the “Company”) today
announced that it has received approval from the United States Bankruptcy Court for the Southern District
of Texas of its prearranged Plan of Reorganization (the “Plan”). In addition to Bankruptcy Court
confirmation, the Plan received support from approximately 80% of the Company’s unsecured notes
(“Noteholders”) and bank lenders representing 100% of the Company’s credit facility claims. In addition,
approximately 81% of the Company’s voting shareholders voted to accept the Plan.
“I am pleased that we have received strong support for the Company’s amended plan. This is an
important milestone, as it clears the path for Valaris to emerge from chapter 11 early in the second
quarter. The overwhelming support from our noteholders and bank lenders shows their confidence in our
go-forward strategy and strength as a company,” said Tom Burke, President and Chief Executive Officer
of Valaris. “This achievement would not have been possible without the continued dedication and loyalty
from our employees, customers, vendors and other partners. We look forward to emerging swiftly with
our strengthened capital structure which, combined with our high-quality rig fleet and personnel, positions
the company well in a still challenging offshore drilling market.”
Upon emergence and implementation of the Plan, Valaris will eliminate $7.1 billion of existing
debt. Valaris will receive a $520 million capital injection through the issuance of a $550 million secured
note maturing in 2028. The note includes the option of an 8.25% cash coupon, 10.25% half cash, half
paid-in-kind coupon or 12% paid-in-kind coupon, all at the Company’s election.
Valaris has also reached an agreement with Daewoo Shipbuilding & Marine Engineering Co., Ltd.
to amend its two newbuild drillship contracts to extend each delivery date to December 31, 2023, while
giving the company the option to take delivery early or terminate the contracts on a non-recourse basis.
Final payments for the VALARIS DS-13 and VALARIS DS-14 are estimated to be approximately $119
million and $218 million, respectively.
Additional Information
Court filings and additional 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).
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’ financial advisor 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. Shearman & Sterling LLP is serving as legal advisors to the RCF
Administrative Agent, and Perella Weinberg Partners LP is serving as financial advisor.
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. Valaris maintains an unwavering commitment to safety, operational excellence, and customer
satisfaction, with a focus on technology and innovation. Valaris plc is an English limited company
(England No. 7023598).To learn more, visit our website at www.valaris.com.
Cautionary Statements
Statements contained in this press release that are not historical facts are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases
such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “might,”
“should,” “will” and similar words. Such statements are subject to numerous risks, uncertainties and
assumptions that may cause actual results to vary materially from those indicated, including the
Company’s ability to obtain Bankruptcy Court approval with respect to motions or other requests made
to the Bankruptcy Court, the ability of the Company to consummate the Plan, the effects of the Chapter
11 Cases on the Company’s liquidity or results of operations or business prospects; the effects of the
Chapter 11 Cases on the Company’s business and the interests of various constituents, the length of
time that the Company will operate under Chapter 11 protection, risks associated with third-party motions
in the Chapter 11 Cases, the Company’s debt levels, liquidity and ability to access financing sources,
debt restrictions that may limit our liquidity and flexibility, the COVID-19 outbreak and global pandemic,
the related public health measures implemented by governments worldwide, which may, among other
things, impact our ability to staff rigs and rotate crews, the decline in oil prices during 2020 caused in part
by the COVID-19 pandemic and the decisions by certain oil producers to reduce export prices and
increase oil production, cancellation, suspension, renegotiation or termination of drilling contracts and
programs. In particular, the unprecedented nature of the current economic downturn, pandemic, and
industry decline may make it particularly difficult to identify risks or predict the degree to which identified
risks will impact the Company’s business and financial condition. In addition to the numerous factors
described above, you should also carefully read and consider “Item 1A. Risk Factors” in Part I and “Item
7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of
our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form
10-Q, which are available on the Securities and Exchange Commission’s website at www.sec.gov or on
the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks
only as of the date of the particular statement and we undertake no obligation to update or revise any
forward-looking statements, except as required by law.
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