Pacific Drilling – Court Approves $350 million Rights Offering and Related Procedures

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September 26, 2018 – The Court hearing the Pacific Drilling case authorized the Debtors’ motion to conduct a $350 million rights offering in connection with the Debtors’ Chapter 11 Plan of Reorganization [Docket No. 619].  As previously reported in respect of this key component to the Debtors’ comprehensive $1.5 billion fund raising effort [Docket No. 554], “By this Motion, the Debtors seek, among other things, authority to conduct the Rights Offering by (a) mailing out approved subscription materials and (b) collecting and holding subscription amounts in escrow or in a segregated account, as applicable, in accordance with the Rights Offering Procedures and the Plan. Completing these steps now will allow the Debtors to seek confirmation of a fully funded Plan, which will clear the way for a rapid exit following confirmation of the Plan….A summary of the Rights Offering Procedures, as Exhibit B, is provided below: (i) Eligibility:  Pursuant to the Plan, each Eligible Holder of an Allowed Term Loan B Claim, an Allowed 2020 Notes Claim and/or an Allowed 2017 Notes Claim (individually, an ‘Applicable Claim,’ and collectively, the ‘Applicable Claims’) that completes the Eligible Holder Certification included as part of the Subscription Form may participate in the Rights Offering in accordance with the terms and conditions of the Rights Offering Procedures. The Subscription Period will begin one business day after the entry of the Approval Order (the ‘Subscription Commencement Date’) and end on October 17, 2018 at 5:00 p.m. New York City time (the ‘Subscription Expiration Deadline’).” 

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