Each one in plain English, with the numbers worked through for a shareholder.
2 May 2023production update▲ Good
Valaris's May 1, 2023 fleet report adds a three-year Petrobras contract for drillship DS-8 (about $500 million including a $30 million mobilization fee, rig being reactivated), a 100-day TotalEnergies contract for DS-12, and a TotalEnergies option on DS-15 (about $254,000 a day, now under contract through Q2 2024). Several jackup contracts were added, including a two-year Harbour extension for jackup 92 at $95,000 a day and a roughly $26 million Beach Energy job for jackup 107. The previously announced sale of jackup 54 for $28.5 million has completed. Total backlog is $2,803.2 million, up from $2,463.2 million in February, with ARO Drilling backlog of $1,632.4 million, down from $1,731.8 million.
On April 19, 2023 Valaris closed the $700 million 8.375% second lien notes due 2030 (about $685 million net) and the $375 million revolver became available to borrow. Part of the proceeds funds redemption of all of the 2028 first lien notes, and the company said it discharged its obligations under that indenture. Remaining proceeds are for general corporate purposes, which the filing says may include working capital, capital expenditures, share repurchases and acquisitions. This completes the refinancing started April 3; the new notes are secured on a second-priority basis behind the revolver.
On April 4, 2023 Valaris priced the second lien notes offering at $700 million, upsized from the $600 million announced a day earlier. The notes carry an 8.375% coupon, mature April 30, 2030, and were sold at par for about $685 million net, with closing expected April 19, 2023. Proceeds are to fund the redemption of the 2028 first lien notes and for general corporate purposes. The deal is tied to the new revolver becoming available.
On April 3, 2023 Valaris signed a new senior secured revolving credit facility of up to $375 million (expandable by $200 million), with Citibank as agent, and announced a planned $600 million second lien notes offering due 2030. Proceeds are meant to redeem all of the roughly $550 million First Lien Notes due 2028 at 104.00% of principal, with a conditional redemption date of May 3, 2023. The revolver only becomes available if the offering closes and the first lien notes are redeemed or discharged by April 20, 2023. This replaces the 2028 first lien notes that carried the restricted payments terms changed in August 2022.
Valaris's February 21, 2023 fleet report shows a SNEPCo option on DS-10 at $231,000 a day, extending the rig to March 2024, and a one-year contract for jackup 249 offshore Trinidad at $125,000 a day with an $8.5 million mobilization fee. New ARO Drilling contracts cover jackups 76 (five years from Q1 2024) and 108 (three years from Q3 2023), both bareboat chartered to ARO. Total backlog is $2,463.2 million, up from $2,387.7 million in January, with ARO Drilling backlog of $1,731.8 million.
GoldenTree Asset Management LP, GoldenTree Asset Management LLC, Steven A. Tananbaum reported a Valaris Ltd shareholding of 2,167,025 shares (2.90% of votes) in a periodic institutional filing.
Famatown Finance Limited, Greenwich Holdings Limited, C.K. Limited* reported a Valaris Ltd shareholding of 5,390,153 shares (7.17% of votes) in a periodic institutional filing.
On January 25, 2023 Valaris amended its December 2021 support agreement with Famatown Finance. Famatown must say by March 6, 2023 whether Gunnar Eliassen, its nominee already on the board, or another nominee will stand at the 2023 annual meeting. The standstill period is extended through that meeting, and further if its nominee is elected. If Eliassen resigns before then, no replacement is required until after the meeting. This continues the Famatown thread: the original agreement had been set to end after the 2022 meeting unless a Famatown director was elected, and Eliassen is now described as serving on the board.
Valaris's January 12, 2023 fleet report adds a four-well BP contract in Egypt for drillship DS-12 (about 320 days from late Q3/early Q4 2023, estimated $136 million), a TotalEnergies option on DS-15 taking it to December 2023, and several North Sea jackup contracts (e.g. 121, 123, 247). It also adds three-year Saudi extensions for jackups 147 and 148, which Valaris will bareboat charter to ARO. Total backlog is $2,387.7 million, up from $2,260.6 million in October, with ARO Drilling backlog of $1,472.3 million. The MS-1 suspension remains in place.
Valaris's October 31, 2022 fleet report shows new work: a three-well Eni Mexico contract for DPS-5 (about 240 days from December 2022, $313,500 a day), a Shell North Sea extension for jackup 122 (about 500 days, over $60 million), and several Saudi Aramco extensions and other options. Total backlog is $2,260.6 million (down from $2,349.3 million in July), plus $435.3 million as Valaris's 50% share of ARO Drilling's owned rigs (adjusted total $2,695.9 million). Separately, after an Australian court set aside an environmental plan for the Barossa Gas Project in September 2022, the customer suspended drilling by MS-1; Valaris says it does not expect a material impact on revenues and earnings during the suspension, whose length is unknown, and an appeal hearing is set for November 2022.
22 Aug 2022security holder rights change● NeutralMajor
On August 19, 2022, after enough holders consented, Valaris signed a Fourth Supplemental Indenture changing the terms of its Senior Secured First Lien Notes due 2028 (issued under the April 30, 2021 indenture). The general limit on restricted payments rises from $100 million to $175 million, a net-income-based basket is added, and the general investments limit rises to the greater of $175 million and 6.5% of total assets (from the greater of $100 million and 4.0%). The changes take effect once the consent fee is paid. The filing does not state the fee amount or what the company intends to do with the extra room.
