Daily News: March 28, 2019

BoA, Deutsche Bank Arrange $50MM Revolver for Parker Drilling


Parker Drilling has completed its financial restructuring and emerged from Chapter 11 protection. According to the 8-K filing, Bank of America served as administrative agent and joint lead arranger and joint bookrunner along with Deutsche Bank on an initial $50 million revolver, which may be increased by another $75 million if certain conditions are satisfied.

Parker moves forward with a stronger financial position, having reduced total debt by approximately two-thirds, from $585 million to $210 million, and securing access to $50 million in exit financing. The company has also raised an additional $95 million through a fully-backstopped equity rights offering.

“Today is an important day in Parker Drilling’s history,” said Gary Rich, president and chief executive officer. “Our new capital structure allows us to pursue profitable growth opportunities and enhances our resiliency across industry cycles. We have always had strong operations, a great team, and loyal customers. Now, we have the right platform on which we can build scale in recovering markets and expand our suite of value-added services and technology-driven solutions to meet customers’ needs across the full drilling cycle.”

Rich continued, “The process we concluded today opens new opportunities for our employees, customers, vendors and investors. We are grateful for the overwhelming support of all our stakeholders during this process and are excited to build on our 85-year legacy of innovation, reliability and efficiency.”

Shares of the company’s common stock will no longer trade on the OTC Pink Marketplace effective as of March 26, 2019. The company intends to list its common stock on the New York Stock Exchange as soon as possible.

Kirkland & Ellis LLP is serving as legal advisor to Parker in connection with the restructuring. Moelis & Company is serving as Parker’s investment banker, and Alvarez & Marsal is serving as its financial advisor.