Vallourec: Request for the consent of certain lenders in view of discussions to be held with all stakeholders on a financial restructuring and potential appointment of a mandataire ad hoc

 Request for the consent of certain lenders in view of discussions to be held with all stakeholders on a financial restructuring and potential appointment of a mandataire ad hoc

Boulogne-Billancourt (France), September 1^st 2020 – As indicated in the press release dated July 29, 2020, upon the announcement of its results for the second quarter and first semester of 2020, the company continued discussions, in particular with its reference shareholders and banks, with a view to defining a new refinancing plan.

Following such discussions, the company contemplates extending the dialogue to all of its banks and bondholders creditors and other stakeholders, with a view to achieving a financial restructuring that embraces all of the borrowings at the level of Vallourec S.A. and allows it to address its upcoming maturities and rebalance its financial structure, taking into account the consequences of the Covid-19 and oil markets crises on its activity.

In this respect, Vallourec will seek the consent of its banks, in accordance with the terms of the relevant revolving credit agreements, to start these discussions.

In order to facilitate discussions with all stakeholders, the company wishes to have the ability to request the appointment of a mandataire ad hoc, which requires the consent of the bondholders of the US-law governed bonds due in October 2022 (Code: XS1700480160) and October 2023 (Code:  XS1807435026), in accordance with their respective documentation.

To this end, a consultation of the holders of the said bonds will be launched on September 2, 2020. Its purpose is to obtain the consent of the required majority of the holders of each of the relevant bond series, so that Vallourec may request, if it so wishes, the appointment of a mandataire ad hoc without this constituting an event of default.

The consultation of the holders of each of these bond series will end on September 11, 2020 at 5:00 p.m., London time, subject to extension at the initiative of Vallourec. Vallourec has appointed Lucid Issuer Services as a tabulation and information agent for the purposes of this consultation ( ).

Vallourec confirms that it has not yet made the decision to request the appointment of a mandataire ad hoc and has not taken any steps to do so. Therefore, Vallourec continues to comply with its obligations under the said bonds.

As of June 30 2020, Vallourec had confirmed bank credit facilities of €1,934 million, including €123 million unused, and cash of €1,420 million. The Group therefore had a liquidity position of €1,543 million. On these credit facilities, €100 million matured in July 2020 and €1,724 million are due to in February 2021. 

About Vallourec

Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec’s pioneering spirit and cutting edge R&D open new technological frontiers. With close to 19,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible. 

Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK) and eligible for the Deferred Settlement System (SRD), Vallourec is included in the following indices: SBF 120 and Next 150. 

In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R2094, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.

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