Valaris debtors Rowandrill, Ensco get court approval of LoC facilities

By Sarah Lizee

Olympia, Wash., Dec. 15 – Valaris plc debtors Rowandrill, LLC and Ensco International, Inc. obtained court approval to access two letter-of-credit facilities, each with an initial limit of $10 million, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

Each facility may be increased to up to $50 million.

Wells Fargo is the bank for Rowandrill’s loan, and JPMorgan is the bank for Ensco’s loan.

Interest on Rowandrill’s loan will be the Prime rate plus 400 basis points, and interest on Ensco’s loan will be the Prime rate plus 200 bps.

The facilities will be secured by cash collateral at 105% of the outstanding letters of credit.

Valaris said in its motion that entry into these agreements will facilitate the debtors’ ordinary course commercial operations.

Valaris is a London-based offshore drilling company. The company filed bankruptcy on Aug. 19 under Chapter 11 case number 20-34114.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.