NOT FOR
PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN
WHOLE OR IN PART IN, OR INTO ANY JURISDICTION IN WHICH SUCH
PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.
THIS ANNOUNCEMENT
IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR CONTAIN
ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO
ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY
SECURITIES IN PETROFAC LIMITED OR ANY OTHER ENTITY IN ANY
JURISDICTION.
THIS ANNOUNCEMENT
CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK
VERSION OF REGULATION (EU) NO. 596/2014 ON MARKET ABUSE, AS IT
FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018.
21 February 2025
UPDATE ON FINANCIAL RESTRUCTURING
Further to its release on 23
December 2024 announcing a comprehensive financial restructuring
plan, and its subsequent market update on 25 January 2025, the
Company provides the following updates:
-
The Company has finalised
agreements with key stakeholders to enable it to commence the court
proceedings in relation to the Restructuring. Accordingly, the
Convening Hearing will be held on 28 February 2025. The Sanction
Hearing remains scheduled for 26 March 2025 and the Restructuring
Effective Date is expected to take place on or around 31 March
2025.
-
The Group has now
secured agreements with financial investors to
facilitate the release of US$80 million of cash collateral which
will be used to secure a performance bond in respect of a key
E&C contract. This arrangement replaces the provision of New
Guarantee Facilities by a Funded Creditor as described in the 23
December 2024 announcement.
-
Based on interest, the Group
expects to upsize the equity raise by US$30 million, taking the
total equity raise to US$224 million. This would increase the total
new funding raised as part of the Restructuring to US$355
million.
-
In addition, in consultation with
key investors and Bondholders, the Group will offer certain
creditors the opportunity to participate in the equity raise by up
to an incremental US$25 million, at the same price as other
investors.
-
On the Restructuring Effective
Date, the existing shareholders of the Company are expected to be
allocated 2.2% of the Company’s total share capital (versus the
2.5% outlined in the 23 December announcement).
-
73.7% of Bondholders have now
committed to support the restructuring plan by acceding to the
Lock-Up agreement. This represents an increase of c. 16.7% since
the launch of the restructuring and constitutes over half of the
secured creditor class. Discussions with other secured creditors
continue.
Following the Convening Hearing,
the Company will commence the subscription period during which
secured creditors can elect to participate in the new money options
available to them under the terms of the Restructuring. Further
information regarding the process, timing and documentation will be
made available through Kroll Issuer Services Limited as information
agent.
A Supplementary
Practice Statement Letter will be made available to the Company's
creditors later today. The Company will continue to update
stakeholders as appropriate in line with its disclosure
obligations, including provision of dates for the forthcoming
General and Creditor Meetings.
ENDS
For further
information contact:
Petrofac
Limited
+44 (0) 207 811
4900
Lynette Otiti, Senior Manager,
Investor Relations
Lynette.otiti@petrofac.com
Sophie Reid, Group Director of
Communications
Sophie.reid@petrofac.com
Teneo (for
Petrofac)
+44 (0) 207 353
4200
petrofac@teneo.com
NOTES TO
EDITORS
Petrofac
Petrofac is a leading international
service provider to the energy industry, with a diverse client
portfolio including many of the world's leading energy
companies.
Petrofac designs, builds, manages
and maintains oil, gas, refining, petrochemicals and renewable
energy infrastructure. Our purpose is to enable our clients to meet
the world's evolving energy needs. Our four values - driven, agile,
respectful and open - are at the heart of everything we
do.
Petrofac's core markets are in the
Middle East and North Africa (MENA) region and the UK North Sea,
where we have built a long and successful track record of safe,
reliable and innovative execution, underpinned by a cost effective
and local delivery model with a strong focus on in-country value.
We operate in several other significant markets, including India,
South East Asia and the United States. We have 8,000 employees
based across 31 offices globally.
Petrofac is quoted on the London
Stock Exchange (symbol: PFC).
For additional
information, please refer to the Petrofac website at
www.petrofac.com
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under Regulation (EU) No. 596/2014 on
market abuse (which forms part of UK domestic law pursuant to the
European Union (Withdrawal) Act 2018) and was authorised for
release by Scott Brooker, Company Secretary.