Houlihan Lokey Advises Floatel Bondholders in a Successful Comprehensive Balance Sheet Restructuring

Houlihan Lokey is pleased to announce the successful restructuring of Floatel International Ltd. (Floatel), an owner and operator of a fleet of offshore accommodation vessels servicing the oil and gas industry. The restructuring transaction reduced the company’s debt by $610 million and enhanced its liquidity position by securing a new $100 million revolving credit facility and reducing its debt service. Houlihan Lokey advised an ad hoc group of holders of approximately 67% of the company’s $400 million first lien bonds and 18% of the company’s $75 million second lien bonds (1L Ad Hoc Group).

The company announced the successful completion of its comprehensive balance sheet restructuring on March 24, 2021, securing a fully consensual deal among all key stakeholders, including shareholders, 1L bondholders, 2L bondholders, and the bank vessel facility lenders, resulting in Floatel retaining its existing fleet of five operating vessels. The company is exiting its restructuring process well positioned to tender for new business as the market recovers, thanks to its significantly deleveraged and well-capitalized balance sheet, and with the continued support of its stakeholders and existing senior leadership.