Houlihan Lokey Advises Noteholders of Ocyan S.A.’s Drilling Business
Ocyan, S.A. has completed a restructuring of its drilling business through Extrajudicial Reorganization proceedings in Brazil and Chapter 15 recognition in the U.S.
Ad Hoc Noteholder Group Advisor
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.
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