Vallourec extends consent solicitation for notes due 2022 and 2023

By Sarah Lizee

Olympia, Wash., Sept. 10 – Vallourec SA extended the consent solicitation for its U.S.-law governed bonds due in October 2022 (ISIN: XS1700480160) and October 2023 (ISIN: XS1807435026) to noon ET on Sept. 17 from noon ET on Sept. 11.

As previously reported, the company is requesting consents from bondholders and lenders in connection with discussions to be held with all stakeholders on a financial restructuring and potential appointment of a mandataire ad hoc, according to a press release.

The company is extending the dialogue to all of its banks, bondholders and other stakeholders, in order to achieve a financial restructuring that embraces all of the borrowings at the level of Vallourec and allows it to address its upcoming maturities and rebalance its financial structure, taking into account the consequences of the Covid-19 and oil markets crises on its activity.

Vallourec said it will seek the consent of its banks, in line with the terms of the relevant revolving credit agreements, to start the discussions.

In order to facilitate discussions with all stakeholders, the company is seeking the ability to request the appointment of a mandataire ad hoc, which requires the consent of the bondholders of the U.S.-law governed bonds.

To this end, a consultation of the bondholders will be launched on Sept. 2. The purpose is to obtain the consent of the required majority of the holders so that Vallourec may request the appointment of a mandataire ad hoc without it constituting an event of default.

Lucid Issuer Services is the tabulation and information agent (vallourec@lucid-is.com).

Vallourec said it has not yet made the decision to request the appointment of a mandataire ad hoc and has not taken any steps to do so, and as such, continues to comply with its obligations under the bonds.

As of June 30, Vallourec had confirmed bank credit facilities of €1.93 billion, including €123 million unused, and cash of €1.42 billion. On these credit facilities, €100 million matured in July 2020 and €1.72 billion is due in February 2021.

Vallourec is a Boulogne-Billancourt, France-based provider of industrial products and services.

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