Paragon Offshore Reaches Agreement For Revised Restructuring Deal - Quick Facts

(RTTNews) - Paragon Offshore plc (PGN, PGNPQ.OB) said it has reached an agreement in principle with an ad hoc committee of holders of bondholders and a steering committee of certain lenders for an Amended Plan Support Agreement or amended PSA, to be dated as of August 5, 2016.

The amended PSA will support a revised plan of reorganization under Chapter 11 of the United States Bankruptcy Code.

Paragon Offshore is in the process of seeking the requisite signatures to the Amended PSA from the revolver lenders and based on conversations as of Friday, August 5, the company believes it will receive the requisite signatures shortly.

If the company does not obtain such consent, it will consider a revised amendment to the plan of organization with regard to the treatment of the revolver lenders.

Additionally, on Friday, August 5, 2016, Paragon filed a Disclosure Statement Supplement, which includes a downside sensitivity analysis that includes the company's actual financial results through June 2016, which have been better than originally anticipated.

Randall Stilley, President and Chief Executive Officer of Paragon, said, "We believe the changes we have made in the Revised Plan increase the likelihood that our restructuring plan will be confirmed, which will allow us to quickly complete the restructuring process as a company well-positioned to create long-term shareholder value."

Under the terms of the revised plan, the revolving credit agreement will still be modified to include a $165 million cash paydown with the balance of about $631 million to converted to a term loan due in 2021.

Also under the revised plan, the bondholders will collectively receive $285 million of cash, or $60 million less than in the original plan. In addition, the definitive settlement between Paragon and Noble Corp. (NE) will remain in place with certain modifications.