Noble emerges from Chapter 11

April 2021 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

April 2021 Issue

Poised to take advantage of future growth opportunities, offshore drilling contractor Noble Holding Corporation plc has successfully completed its financial restructuring to emerge from Chapter 11 bankruptcy with a new parent company named Noble Corporation.

As a result of the financial restructuring, Noble will have a substantially delivered balance sheet with less than $400m of debt and liquidity of approximately $600m. Noble’s new capital structure includes a $675m revolving credit facility – of which $178m is currently drawn – and $216m of second lien notes.

Furthermore, upon emergence, Noble’s ordinary shares were cancelled, and shares of the company were issued to former bondholders. Certain former bondholders and former equity holders of Noble were also issued warrants to purchase shares of the company. Noble also intends to pursue listing on a national securities exchange following emergence.

Additionally, Noble has emerged from Chapter 11 with a new parent company organised under the laws of the Cayman Islands and a contract backlog worth over $1.5bn.

Noble filed for Chapter 11 protection in October 2020 following a significant crash in crude oil prices, which made undersea wells too expensive to operate – a downturn compounded by the impact of the coronavirus (COVID-19) pandemic. Its restructuring support agreement – with two ad hoc groups of the largest holders of the company’s outstanding bond debt – sought to eliminate the company’s $3.4bn of debt through the cancellation and exchange of debt for new equity.

“We are pleased to have completed our restructuring process and to emerge with renewed balance sheet strength and strategic flexibility,” said Robert Eifler, president and chief executive of Noble. “On behalf of the company, I would like to personally thank our customers, vendors, lenders, bondholders and board of directors, for their support throughout this process. I also would like to thank our employees who remained focused and delivered operational excellence throughout our restructuring, despite the challenges presented by the ongoing pandemic.”

Noble has also made a number of new appointments to its board of directors to govern the company upon emergence from restructuring. “We are extremely pleased to have such an experienced board of directors that will help Noble navigate the industry challenges ahead and execute on our strategic priorities,” added Mr Eifler. “We look forward to getting to work with them immediately.”

Representing Noble in the restructuring was Skadden, Arps, Slate, Meagher & Flom LLP, Evercore, AlixPartners LLP, Porter Hedges LLP and EPIQ Restructuring Services LLC.

A leading offshore drilling contractor for the oil and gas industry, Noble owns and operates one of the most modern, versatile and technically advanced fleets in the offshore drilling industry. It performs, through its subsidiaries, contract drilling services with a fleet of 19 offshore drilling units, consisting of 7 drillships and semisubmersibles and 12 jackups, focused largely on ultra-deepwater and high-specification jackup drilling opportunities in both established and emerging regions worldwide.

Mr Eifler concluded: “The combination of this strong financial foundation with our industry-leading high-spec focused fleet, world class employees and deep customer relationships will position us to take advantage of growth opportunities ahead.”

Fraser Tennant