Paratus Energy Services Ltd. Commences Consent Solicitation for Convertible Loan Conversion
5 Apr, 2023
Paratus Energy Services Ltd. an exempted company limited by shares incorporated under the laws of Bermuda formerly known as Seadrill New Finance Limited (the “Company”) today announced that it has commenced a solicitation of consents (the “Consent Solicitation”) from the holders of its Senior Secured Notes due 2026 (CUSIPs 81173J AC3, G8000A AH6 and 81173J AD1; ISINs US81173JAC36, USG8000AAH61 and US81173JAD19) (the “Notes”) to approve the conversion of a Convertible Loan which requires consent under the Amended and Restated Indenture, dated as of January 20, 2022 (as subsequently amended and supplemented, the “Indenture”), governing the Notes (the "Proposed Consent"). The Consent Solicitation is being made in accordance with the terms and subject to the conditions stated in a Consent Solicitation Statement, dated April 05, 2023 (the “Consent Solicitation Statement”).
The Consent Solicitation will expire at 5:00 p.m., New York City time, on April 14, 2023, unless extended or earlier terminated (such time on such date, as the same may be extended or earlier terminated, the “Expiration Time”). The Consent Solicitation is subject to certain conditions, including, among others, the receipt at or prior to the Expiration Time of consent to the Convertible Loan Conversion (as defined below)from holders representing at least a majority in aggregate principal amount of the Notes outstanding (including, without limitation, PIK Notes (as defined in the Indenture), if any) as of the record date for the Consent Solicitation of 5:00 p.m., New York City time, on April 04, 2023 (the “record date”) considered together as a single class (the “Requisite Consent”). As of the record date, there was approximately $698,028,774 aggregate principal amount of the Notes outstanding (including, without limitation, PIK Notes (as defined in the Indenture)).
The purpose of the Consent Solicitation is to obtain approval to the early conversion of an existing convertible loan made by the Company's subsidiary, Paratus JU Newco Bermuda Limited ("Paratus JU Newco"), to Archer Limited ("Archer") originally dated May 27, 2016 (as amended and restated from time to time) (the "Convertible Loan"), into ordinary shares in the capital of Archer (the "Convertible Loan Conversion").
The Proposed Consent will become valid upon receipt of the Requisite Consent (the “Effective Time”), which may occur prior to the Expiration Time if the Requisite Consent is received before that time. Upon receipt of the Requisite Consent, the Company and/or Paratus JU Newco will enter into the necessary supplemental documentation (including documentation to effect the Convertible Loan Conversion and related matters). No consents may be revoked after the Effective Time. Upon the Proposed Consent becoming valid, all holders of the Notes will be bound by the Proposed Consent, even if they did not deliver consent to the Convertible Loan Conversion.
Consents may be revoked at any time prior to the earlier to occur of the Effective Time and the Expiration Time, but not thereafter, by following the procedures set forth in the Consent Solicitation Statement.
The Company expressly reserves the right, in its sole discretion, subject to applicable law, to (i) extend, abandon, terminate or amend the Consent Solicitation at any time, (ii) waive any conditions to the Consent Solicitation, and (iii) not extend the Expiration Time, whether or not the Requisite Consents have been obtained by such date. No consent fee or payment will be made in connection with the Consent Solicitation.
The terms and conditions of the Consent Solicitation are set forth in the Consent Solicitation Statement. Copies of the Consent Solicitation Statement may be obtained from Global Bondholder Services Corporation, the Information and Tabulation Agent for the Consent Solicitation, at 855-654-2014 (toll free) or 212-430-3774 (banks and brokers) or by email at contact@gbsc-usa.com.
Holders are advised to check with any bank, securities broker or other intermediary through which they hold the Notes as to when such intermediary needs to receive instructions from a holder in order for that holder to be able to participate in, or revoke their instruction to participate in, the Consent Solicitation, before the deadline specified herein and in the Consent Solicitation Statement.
None of the Company, its board of directors, its officers, the Information and Tabulation Agent, or the trustee (in any of its capacities) for the Notes makes any recommendation as to whether holders should deliver their consents pursuant to the Consent Solicitation, and no one has been authorized by any of them to make such recommendation. Holders must make their own decisions as to whether to participate in the Consent Solicitation.
This press release is for informational purposes only and is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this press release or otherwise. The Consent Solicitation is being made only by, and pursuant to the terms of, the Consent Solicitation Statement, and the information in this press release is qualified by reference to the Consent Solicitation Statement. The Consent Solicitation is not being made in any jurisdiction in which the making thereof would not be in compliance with the applicable laws of such jurisdiction.
Neither the Company nor any of its subsidiaries undertakes any obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.