Valaris Limited (VAL) (“Valaris”) and its wholly-owned subsidiary, Valaris Finance Company LLC, announced the closing of their private placement (the “Offering”) under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”), of $700 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the “Second Lien Notes”). Valaris is using a portion of the net proceeds from the Offering to fund the previously announced redemption of all of its outstanding Senior Secured First Lien Notes due 2028 (the “First Lien Notes”) and intends to use the remainder of the net proceeds for general corporate purposes. In connection with the closing of the Offering, Valaris discharged its obligations under the indenture governing the First Lien Notes.
In addition, the commitments under Valaris’ previously announced senior secured five-year credit agreement (the “Credit Agreement”) became available to be borrowed upon the closing of the Offering. The Credit Agreement provides for commitments permitting borrowings of up to $375 million and is (i) guaranteed by the same subsidiaries that guarantee the Second Lien Notes and by Valaris Finance Company LLC and (ii) secured on a first lien basis by the same assets that secure the Second Lien Notes.
