Altera Infrastructure Completes Restructuring Support Agreement With Majority of Secured Lenders and Enters Chapter 11 to Strengthen Capital Structure and Position for Long-Term Growth – GlobeNewswire | Vette Leader

  • The restructuring will be carried out through a pre-arranged Chapter 11 proceeding in the US Bankruptcy Court
  • The restructuring will significantly de-leverage Altera’s balance sheet and provide a long-term, sustainably positive liquidity outlook
  • Brookfield Business Partners LP and certain of its affiliates and institutional partners (collectively, “Brookfield”) to settle more than $750 million in debt upon closing of the transactions and provide an additional $50 million debtor-owned financing facility to help fund the Chapter 11 process
  • Altera will continue to operate as normal during the restructuring
  • Altera Shuttle Tankers and FPSO J/Vs not part of restructuring process

WESTHILL, United Kingdom, August 15, 2022 (GLOBE NEWSWIRE) — Altera Infrastructure LP and certain of its subsidiaries (“Altera‘), one of the world’s leading providers of infrastructure assets to the offshore energy industry, announced today that it has entered into a Restructuring Support Agreement (the “RSA”) covering approximately 71% of Altera’s funded debt obligations, including Brookfield and a Super majority of its bank lenders. Overall, the RSA has been signed or agreed in principle by the holders of 80% of its funded debt obligations, which includes approximately 91% of its bank lenders, which are pending internal credit approval processes from certain lenders. The terms of the RSA provide the framework for an amicable and comprehensive financial restructuring that will relieve Altera’s balance sheet and optimally position Altera for long-term growth and success. Altera has filed Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas to complete the balance sheet restructuring.

The RSA is considering, among other things, more than $1 billion in secured and unsecured holding company debt, $400 million in preferred stock and $550 million in secured asset-level bank debt (including unsecured guarantees for such debt held by Altera Infrastructure LP issued). , a major reprofiling of Altera’s bank lending facilities to better align cash flow with debt servicing obligations, and continued support from Altera’s equity sponsor Brookfield. In addition, Altera has received a $50 million equity financing commitment from Brookfield to fund Altera’s restructuring process and ensure normal course operations are not disrupted during the Chapter 11 process.

In connection with the filings, Altera has filed a number of filings which, if approved by the court, will allow the company to continue to conduct its business as normal without interruption. These requests will also allow Altera to continuously meet its obligations to its employees, customers and suppliers on previously agreed schedules and terms.

Ingvild Sæther, Chief Executive Officer of Altera Infrastructure Group Ltd., commented: “We are entering this phase of our balance sheet restructuring with the support of the majority of Altera’s secured lenders and equity investor Brookfield. We are confident that this Chapter 11 process will result in a comprehensive recapitalization transaction that will not only stabilize liquidity but also de-leverage our balance sheet and better position Altera for future growth.

additional information

Additional information on the Company’s Chapter 11 cases, including access to court filings and other documents related to the restructuring process, is available at https://cases.stretto.com/Altera or by calling Altera’s Restructuring Information Line at +(949) 266-0151 (international) or (855) 300-3407 (toll free in the US).

Kirkland & Ellis LLP is acting as the firm’s restructuring adviser, Jackson Walker LLP is acting as local adviser, FTI Consulting, Inc. is acting as financial adviser, Evercore Group LLC is acting as investment banker, and Stretto is acting as claims and reporting agent.

About Altera Infrastructure LP

Altera Infrastructure LP is a leading global energy services provider to the oil and gas industry focused on providing critical infrastructure assets to its customers in the offshore oil and gas regions of the North Sea, Brazil and east coast Canada. Altera’s fleet of 41 vessels includes floating production, storage and offloading units, shuttle tankers, floating storage and take-off units, long-distance towing and offshore installation vessels, and a maintenance and safety unit. Most of the Altera fleet is occupied on medium-term, stable contracts.

For more information, see https://cases.stretto.com/Altera or visit us at https://alterainfra.com/

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