Weatherford International has completed its financial restructuring and emerged from Chapter 11 protection.
The company emerges with a stronger financial foundation having reduced approximately $6.2 billion of outstanding funded debt, secured $2.6 billion in exit financing facilities, including a $450 million revolving credit facility, secured a $105 million letter of credit facility, and secured more than $900 million of liquidity.
According to a related 8-K filing, the company obtained an exit facility commitment letter from Wells Fargo Bank, Wells Fargo Securities, Deutsche Bank Securities, Deutsche Bank New York Branch, Deutsche Bank Trust Company Americas and Barclays Bank. The banks committed to a senior secured asset-based revolving credit facility in an aggregate amount of $450 million and a senior secured letter of credit facility in an aggregate amount of $105 million.
The exit facility commitment Letter was approved by the Bankruptcy Court on November 12, 2019. While the commitment parties have committed to provide an aggregate amount of $105 million under the L/C facility, the commitment parties have agreed to arrange and syndicate the L/C facility up to an aggregate amount of $200 million (including the $105 million committed amount).
Deutsche Bank Trust Company Americas will serve as administrative agent for the L/C facility, and Wells Fargo will serve as administrative agent for the ABL facility.
“This is a notable day for Weatherford as we have emerged as a stronger, more focused organization,” said Mark A. McCollum, president and CEO of Weatherford. “With renewed balance sheet strength, a strong customer base and a portfolio designed to meet the needs of our industry, we believe we are well-positioned to build on our reputation as a leader in the oilfield services sector and to capitalize on the growth opportunities ahead.”
A new board of directors was appointed upon the company’s emergence, providing critical expertise and experience to Weatherford as it enters the next phase of growth and innovation. The new board of directors consists of seven members, including Chairman of the Board Thomas R. Bates, Jr., John F. Glick, Neal P. Goldman, Gordon T. Hall, Mark A. McCollum, Jacqueline Mutschler, and Charles M. Sledge.
Weatherford was represented in the recapitalization by Latham & Watkins , Matheson, Hunton Andrews Kurth, Lazard Freres, Alvarez & Marsal and Conyers Dill & Pearman.
Weatherford International is an Irish-domiciled multinational oil and gas company.