Petrofac Reaches In-Principle Agreement on Financial Restructure

Petrofac Limited has announced a preliminary agreement on a comprehensive financial restructure. This agreement seeks to fortify Petrofac’s financial standing and align it with the Group's strategic objectives.

The proposed restructure includes new long-term funding supported by senior secured noteholders and additional equity financing. A significant portion of the company's existing debt will convert to equity, potentially diluting current shareholders. Alternative arrangements with key clients aim to meet performance security requirements, and a reduced guarantee requirement is planned for a contract awarded in 2023.

Stakeholders, including the ad hoc group of senior noteholders and key clients, support the in-principle agreement. Discussions with the bank lending group and major shareholders are progressing.

This agreement intends to meet performance security requirements, strengthen Petrofac’s balance sheet, and improve liquidity to support future growth. The agreement remains non-binding and requires terms finalization, shareholder resolutions, and court approval.

The Board continues to collaborate with creditors, clients, and stakeholders for the financial restructure's completion. The company aims to announce a lock-up agreement soon.