Houlihan Lokey Advises Noteholders of Ocyan S.A.’s Drilling Business

Houlihan Lokey is pleased to announce the successful $2.7 billion cross-border restructuring of the offshore drilling business of Ocyan S.A. through an extrajudicial reorganization proceeding in Brazil and Chapter 15 recognition in the U.S.

Ocyan is a leading offshore drilling contractor in Brazil, serving Petrobras and other customers in ultra-deepwater drilling. The company owns or operates six ultra-deepwater rigs, including four drillships and two semisubmersibles. Ocyan has maintained a strong operating history; however, following a prolonged industry-wide downturn that upended the entire sector, Ocyan engaged with its stakeholders to recapitalize its balance sheet. Ocyan filed for an extrajudicial reorganization in December 2022 and a Chapter 15 in April 2023 to finalize and implement the recapitalization.

Houlihan Lokey negotiated and structured the transactions on behalf of an ad hoc group of noteholders holding a majority of each of the two tranches of the company’s senior secured notes due 2026. The consensual $2.7 billion restructuring transaction involved a $197 million capital raise, a right-sizing of the balance sheet via a debt-for-equity conversion, and a merger of the management company with the asset holding companies. Ocyan completed its restructuring, financing, and merger transactions on June 7, 2023.