REG-Petrofac Limited Petrofac Limited: UPDATE ON FINANCIAL RESTRUCTURING

PetrofacAnnouncement

24/02/2025 07:15

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   Petrofac Limited ( PFC)
   Petrofac Limited: UPDATE ON FINANCIAL RESTRUCTURING

   24-Feb-2025 / 07:00 GMT/BST

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   NOT FOR PUBLICATION, RELEASE OR  DISTRIBUTION, DIRECTLY OR INDIRECTLY,  IN
   WHOLE OR IN PART IN, OR  INTO ANY JURISDICTION IN WHICH SUCH  PUBLICATION,
   RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.

    

   THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE
   OR CONTAIN ANY INVITATION,  SOLICITATION, RECOMMENDATION, OFFER OR  ADVICE
   TO ANY  PERSON TO  SUBSCRIBE  FOR, OTHERWISE  ACQUIRE  OR DISPOSE  OF  ANY
   SECURITIES IN PETROFAC LIMITED OR ANY OTHER ENTITY IN ANY JURISDICTION.

    

   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF  ARTICLE
   7 OF THE UK VERSION OF REGULATION (EU) NO. 596/2014 ON MARKET ABUSE, AS IT
   FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL)
   ACT 2018.

    

    

   21 February 2025

                                        

                       UPDATE ON FINANCIAL RESTRUCTURING

    

   Further to  its release  on 23  December 2024  announcing a  comprehensive
   financial restructuring  plan,  and its  subsequent  market update  on  25
   January 2025, the Company provides the following updates:

    

     • The Company has finalised agreements  with key stakeholders to  enable
       it to commence the court proceedings in relation to the Restructuring.
       Accordingly, the Convening Hearing will  be held on 28 February  2025.
       The Sanction  Hearing remains  scheduled  for 26  March 2025  and  the
       Restructuring Effective Date is expected to take place on or around 31
       March 2025. 
     • The Group  has  now  secured agreements with  financial  investors  to
       facilitate the release of US$80 million of cash collateral which  will
       be used to secure a performance bond in respect of a key E&C contract.
       This arrangement replaces the provision of New Guarantee Facilities by
       a Funded Creditor as described in the 23 December 2024 announcement.
     • Based on interest,  the Group expects  to upsize the  equity raise  by
       US$30 million, taking the total  equity raise to US$224 million.  This
       would  increase  the  total  new   funding  raised  as  part  of   the
       Restructuring to US$355 million.
     • In addition, in consultation with  key investors and Bondholders,  the
       Group will offer certain creditors  the opportunity to participate  in
       the equity raise by  up to an incremental  US$25 million, at the  same
       price as other investors.
     • On the Restructuring Effective Date, the existing shareholders of  the
       Company are expected to be allocated 2.2% of the Company’s total share
       capital (versus the 2.5% outlined in the 23 December announcement).
     • 73.7% of Bondholders have now  committed to support the  restructuring
       plan by acceding to the Lock-Up agreement. This represents an increase
       of c. 16.7% since the launch of the restructuring and constitutes over
       half of the  secured creditor  class. Discussions  with other  secured
       creditors continue.

    

   Following  the   Convening  Hearing,   the  Company   will  commence   the
   subscription  period  during   which  secured  creditors   can  elect   to
   participate in the new money options available to them under the terms  of
   the Restructuring. Further information  regarding the process, timing  and
   documentation will be made available through Kroll Issuer Services Limited
   as information agent.

    

   A Supplementary Practice Statement  Letter will be  made available to  the
   Company's creditors  later  today. The  Company  will continue  to  update
   stakeholders as  appropriate  in  line with  its  disclosure  obligations,
   including provision  of dates  for the  forthcoming General  and  Creditor
   Meetings.
    

   ENDS

    

    

   For further information contact:

   Petrofac Limited

   +44 (0) 207 811 4900

    

   Lynette Otiti, Senior Manager, Investor Relations

    1 Lynette.otiti@petrofac.com

    

   Sophie Reid, Group Director of Communications

    2 Sophie.reid@petrofac.com

    

   Teneo (for Petrofac)

   +44 (0) 207 353 4200

   petrofac@teneo.com

    

    

    

   NOTES TO EDITORS

    

   Petrofac

    

   Petrofac is  a  leading  international  service  provider  to  the  energy
   industry, with a diverse  client portfolio including  many of the  world's
   leading energy companies.

    

   Petrofac designs,  builds,  manages  and  maintains  oil,  gas,  refining,
   petrochemicals and  renewable energy  infrastructure.  Our purpose  is  to
   enable our clients  to meet the  world's evolving energy  needs. Our  four
   values -  driven,  agile,  respectful and  open  -  are at  the  heart  of
   everything we do.

    

   Petrofac's core markets  are in the  Middle East and  North Africa  (MENA)
   region and the UK  North Sea, where  we have built  a long and  successful
   track record of safe, reliable and innovative execution, underpinned by  a
   cost effective and local delivery model with a strong focus on  in-country
   value. We operate in several  other significant markets, including  India,
   South East  Asia and  the United  States. We  have 8,000  employees  based
   across 31 offices globally.

    

   Petrofac is quoted on the London Stock Exchange (symbol: PFC).

    

   For additional information, please refer to the Petrofac website at
    3 www.petrofac.com

    

   The information  contained  within  this announcement  is  deemed  by  the
   Company to constitute  inside information as  stipulated under  Regulation
   (EU) No. 596/2014  on market abuse  (which forms part  of UK domestic  law
   pursuant to the European Union  (Withdrawal) Act 2018) and was  authorised
   for release by Scott Brooker, Company Secretary.

    

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00B0H2K534
   Category Code:  MSCU
   TIDM:           PFC
   LEI Code:       2138004624W8CKCSJ177
   OAM Categories: 2.2. Inside information
                   3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   376912
   EQS News ID:    2090041


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:Lynette.otiti@petrofac.com
   2. mailto:Sophie.reid@petrofac.com
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=9fe21fdf68d48cc06116e9fe9587a1c8&application_id=2090041&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news


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