Vallourec seeks to reduce debt by 50% with debt-to-equity conversion

By Cady Vishniac

Detroit, Nov. 17 – Vallourec SA has confirmed in a press release that it seeks to reduce its debt by slightly over 50% by way of a debt-to-equity conversion.

As previously reported, Vallourec approached its creditors as part of its mandataire ad hoc to restructure debt amounting to €3.5 billion as of Sept. 30, of which €1.7 billion will mature in February 2021, taking into account the consequences of the Covid-19 and oil markets crises on its activity.

Discussions between the company and its shareholders are underway, and announcements to the market of the discussions’ results will be made in due course.

Vallourec first announced Sept. 1 that it was seeking consents to request the appointment of the mandataire ad hoc from bondholders of its U.S.-law governed bonds due in October 2022 (ISIN: XS1700480160) and October 2023 (ISIN: XS1807435026).

The company announced Sept. 21 that the bondholders had approved the request and that Vallourec had also obtained an agreement from its banks to the proposed financial restructuring.

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

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