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Petrofac Creditors Agree to Convert Most of Debt Into Equity
September 30, 2024
Petrofac Ltd., an international energy services company headquartered in UK, has reached a preliminary agreement with key stakeholders to convert majority of its debt into equity, which will significantly dilute existing shareholders. The company will secure a new long-term funding from senior secured noteholders and additional equity from new and existing investors to enhance liquidity. This non-binding deal is contingent on certain terms and is expected to lead to a lock-up agreement soon. The agreement involves senior noteholders representing about 47% of outstanding notes and major shareholders holding 34% of ordinary shares. Chairman René Médori noted that this is a significant step towards strengthening Petrofac’s balance sheet and improving liquidity, enabling the company to maintain and pursue contracts.
Its dollar bond continue to trade at distressed levels of 24 cents on the dollar.
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