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Weatherford amends restructuring support deal, will issue exit notes
By Caroline Salls
Pittsburgh, Sept. 10 – Weatherford International plc entered into an amended restructuring support agreement to account for the issuance of $2.1 billion in exit notes and an amended backstop commitment agreement that increases the commitment amount to $1.6 billion from $1.25 billion, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Under the restructuring support amendment, which was agreed by the Weatherford parties and some of its noteholders, the Weatherford parties will issue a single tranche of up to $2.1 billion principal amount of new unsecured exit notes upon emergence from bankruptcy, consisting of up to $1.6 billion of exit notes issued for cash to holders of subscription rights and $500 million issued to holders of unsecured notes claims.
Weatherford said the exit notes will be issued in lieu of the two tranches of new unsecured notes in the total principal amount of $2.5 billion previously contemplated by the original support agreement.
The exit notes will bear interest at a rate of 11%.
The company said the backstop commitment amendment also calls for the joinder of additional commitment parties and accounts for changes reflected in the restructuring support agreement amendment.
In exchange for the increased backstop commitment, the Weatherford parties will make an $18.7 million non-refundable cash payment to some of the commitment parties.
Weatherford is an oilfield services company based in Baar, Switzerland. The company filed bankruptcy on July 1 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 19-33694.
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