Noble Company (NYSE:NE) filed for Chapter 11 bankruptcy on Friday. The offshore driller (to not be confused with oil and gasoline producer Noble Vitality, which Chevron recently agreed to acquire) has entered right into a restructuring assist settlement with two teams consisting of its largest bondholders. The deal will remove all $3.four billion of its current bond debt.
Noble will use the chapter course of to allow bondholders to change their bond holdings for fairness within the reorganized firm. Along with that debt change, bondholders have additionally agreed to take a position an extra $200 million into the corporate through new second-lien notes. In the meantime, it has secured a $675 million credit score facility with different lenders, offering it with extra liquidity as soon as it emerges from chapter. Noble’s improved stability sheet and liquidity following this course of will enable it to function and put money into its property.
Noble is the second main offshore driller to file for chapter this 12 months, following Diamond Offshore Drilling in April. It possible will not be the final, as Valaris warned earlier this week that Chapter 11 chapter was “imminent.” Valaris missed $58.5 million in bond curiosity funds in June and July and has “substantial uncertainty” about whether or not it can make a $79.2 million curiosity cost due in the midst of August. Noble Vitality had missed a $15 million bond curiosity cost in mid-July, which appeared like a precursor to its chapter submitting.