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Noble Emerges from Chapter 11 Bankruptcy

Mike Schuler
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February 9, 2021

Offshore drilling contractor Noble has emerged from Chapter 11 bankruptcy after completing a financial restructuring to eliminate $3.4 billion in bond debt.

Noble emerges with a substantially delevered balance sheet with less than $400 million of debt and approximately $600 million of liquidity. Noble’s new capital structure will include a new $675 million revolving credit facility, of which $178 million is currently drawn, and $216 million of second lien notes.

The company also emerges with a new parent company organized under the laws of the Cayman Islands and a contract backlog worth over $1.5 billion.

Noble’s fleet consists of 19 high-specification rigs, made up of jack-ups, drillships and semisubmersibles, with an average age of seven years.

Noble announced last July it had entered into a restructuring support agreement with two ad hoc groups of the largest holders of the company’s outstanding bond debt. The agreement, which included Chapter 11, included a comprehensive plan for the elimination of all of the $3.4 billion of debt through the cancellation and exchange of debt for new equity in the reorganized company.

“We are pleased to have completed our restructuring process and to emerge with renewed balance sheet strength and strategic flexibility,” said Robert Eifler, President and Chief Executive Officer. “On behalf of the Company, I would like to personally thank our customers, vendors, lenders, bondholders and board of directors, for their support throughout this process. In particular, I also would like to thank our employees who remained focused and delivered operational excellence throughout our restructuring, despite the challenges presented by the ongoing pandemic. The combination of this strong financial foundation with our industry-leading high-spec focused fleet, world class employees and deep customer relationships will position us to take advantage of growth opportunities ahead.”

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