Cleary Gottlieb is advising Vallourec in its share capital increase with subscription rights for an amount of approximately €300 million.
The transaction is the final step in the financial restructuring of the company, whose safeguard plan was approved by the Nanterre Commercial Court in a ruling issued on May 19, 2021.
The share capital increase with preferential subscription rights was launched on June 3, 2021, and is subject to subscription commitments from Nippon Steel Corporation and Bpifrance Participations in an amount of €35 million and €20 million respectively. The unsubscribed amount of the capital increase is fully guaranteed by Vallourec’s creditors under the various RCFs and bonds (with the exception of the commercial banks), by way of debt set-off. BNP Paribas and Natixis will act as global coordinators, joint lead managers, and joint bookrunners, and CIC Market Solutions will act as joint bookrunner. The settlement and delivery of the new shares is scheduled for June 30, 2021.
The proceeds of the capital increase with preferential subscription rights will be allocated to the partial repayment of certain residual restructured receivables, in proportion to their holding by Vallourec’s creditors under the various RCFs and bonds (with the exception of the commercial banks). The completion of the restructuring operations will enable Vallourec to benefit from a strengthened balance sheet in order to implement its strategic plan.