Valaris enters into $375 million revolver pending second-lien note sale

Chicago, April 3 – Valaris Ltd. entered into a $375 million senior secured revolving credit facility on April 3, according to an 8-K filing with the Securities and Exchange Commission.

There is a $150 million sublimit for letters of credit and a $200 million accordion, subject to lender agreement.

The revolver has a special condition whereby the commitments will only be made available if the company closes on a new offering of second-lien notes due 2030 and also redeems or discharges all of its first-lien notes by April 20.

Interest will be at SOFR plus 10 basis points CSA and a margin ranging from 150 bps to 400 bps, based on ratings.

The commitment fee will range from 37.5 bps to 75 bps, also based on ratings.

Valaris Finance Co. LLC and certain other subsidiaries will guarantee the credit facility.

Security will include first preferred ship mortgages over each vessel owned by the company as of the availability date, first priority assignments of certain insurances and requisition compensation in respect of the collateral vessels, first priority pledges of all equity interests in subsidiaries of the company that own collateral vessels, first priority assignments of earnings of the collateral vessels from the collateral rig owners, any vessels of the company and the guarantors that are pledged at the company’s option to secure the credit agreement and all proceeds thereof.

Citibank, NA is the administrative agent.

Wilmington Savings Fund Society, FSB is the collateral trustee.

Citibank, Deutsche Bank Securities Inc. and DNB Markets, Inc. are the joint lead arrangers and lead bookrunners.

Valaris is a Hamilton, Bermuda-based offshore drilling company.

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