History
Vantage Drilling emerged from restructuring in 2016, won a $700 million Petrobras settlement in 2019, sold its Qatar rigs in 2022, refinanced in 2023, then stopped SEC reporting.
2016-2018: A fresh start and new debt
Vantage Drilling International, formerly Offshore Group Investment Limited, emerged from its restructuring plan on February 10, 2016. It left with a new debt stack: $143 million of senior secured term loans, a $32 million letter of credit facility, up to $76.125 million of 10% second lien notes, and third lien convertible notes issued stapled to new ordinary shares. The third lien notes could convert at an initial $95.60 per share, but only under set conditions, including resolution of the Petrobras-related claims. A Management Incentive Plan was adopted, with initial grants valued at $44.5 million and future awards tied to 3.25% of the net proceeds of the Petrobras arbitration. Shares on issue stood at about 5 million.
In November 2018 the company priced $350 million of 9.25% senior secured first lien notes due 2023, closing on November 30. The money was meant to repay the first lien credit agreement, redeem the second lien notes and fund a new jack-up rig purchase, if that went ahead.
2019-2021: The Petrobras payout
On June 20, 2019 the company's subsidiaries settled the Petrobras arbitration award, which stemmed from the wrongful termination of the Titanium Explorer contract. They received $690.8 million and $10.1 million the next day, before legal fees, including a 10% contingency fee, and taxes. Petrobras kept its right to appeal and could seek repayment if the U.S. judgment were overturned.
In December 2019 all the third lien notes converted into ordinary shares at about one share per $95.60 of notes. The company issued 8,114,977 new shares, bringing the total to 13,115,026, and the stapled securities ended. The record for 2020 and most of 2021 is quiet.
2021-2023: Selling the Qatar rigs and refinancing
In December 2021 the company agreed to sell Emerald Driller Company, which held three Qatar jack-up rigs, to ADES Arabia Holding. ADES was already its 49% partner in an Egyptian joint venture. The sale closed on May 27, 2022 for $170 million in cash plus $34 million of contract preparation cost reimbursements, with $4 million held in escrow for price adjustments. Vantage agreed to provide support services on the rigs for three years. It said it was still evaluating uses for the proceeds.
On March 1, 2023 it issued $200 million of 9.500% senior secured first lien notes due 2028 and used the money to repay and redeem all of the 9.25% notes due 2023. At its latest filing in July 2023, the company described a fleet of two ultra-deepwater drillships and two premium jack-ups. It had 13,229,280 shares on issue at the end of 2023. The Petrobras settlement remained open to repayment if the U.S. judgment were overturned on appeal. On September 29, 2023 the company suspended its duty to file periodic reports with the SEC.
Written from the 9 story beats below (2016 to 29 Sept 2023), which come from the company's own announcements and filings.