Petrofac (LSE:PFC) and Petrofac International (UAE) LLC - Restructuring Plans

Oilfield services provider Petrofac (LSE:PFC) and Petrofac International (UAE) LLC have launched restructuring plans pursuant to Part 26A of the Companies Act 2006 to effect a restructuring agreed to with key financial creditors of the Petrofac Group, including an ad hoc group of holders of senior secured notes and certain other senior secured noteholders, which together comprise approximately 57% of the senior secured notes.

Petrofac has recently struggled, reporting a net loss of $162 million in the first half of 2024.

The restructuring involves US$325 million in new funding and the conversion of approximately US$772 million of existing debt into equity. In aggregate, the restructuring is expected to deliver at least US$325 million of new funding to the Petrofac Group.

After repayment of certain obligations and transaction costs, this is expected to result in an immediate increase in liquidity of at least US$195 million.

The company has engaged Kroll Issuer Services to act as lock-up agent.

Houlihan Lokey is the financial advisor to the ad hoc group.