Altera Infrastructure Executes Restructuring Support Agreement with Majority of Secured Lenders, Enters Chapter 11 to Strengthen Capital Structure and Position for Long-Term Growth

ALTERA INFRASTRUCTURE SERVICES PTE. LTD.

  • The restructuring will be implemented through a prearranged Chapter 11 process in the U.S. Bankruptcy Court

  • The restructuring will significantly reduce Altera’s balance sheet and facilitate a positive and sustainable long-term liquidity outlook

  • Brookfield Business Partners LP, and certain of its affiliates and institutional partners (collectively, “Brookfield”) to discharge more than $750 million in debt upon completion of the transactions and provide an additional $50 million debtor-in-possession 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/V not part of restructuring process

WESTHILL, UK, Aug. 15, 2022 (GLOBE NEWSWIRE) — Altera Infrastructure LP and certain of its subsidiaries (“Altera”), a leading global provider of infrastructure assets to the offshore energy industry, today announced that it has signed a Restructuring Support Agreement (the “RSA”) with about 71% of Altera’s funded debt obligations, which includes Brookfield and a super-majority of its bank lenders. Overall, the RSA has been signed or accepted in principle by holders of 80% of its funded debt securities, which includes approximately 91% of its bank lenders pending internal credit approval processes from some creditors . The terms of the RSA establish the framework for a consensual and comprehensive financial restructuring that will deleverage Altera’s balance sheet and best position Altera for long-term growth and success. To implement the balance sheet restructuring, Altera commenced Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas.

The RSA plans to, among other things, address over $1 billion of secured and unsecured holding company debt, $400 million of preferred stock, and $550 million of asset-level secured bank debt (including unsecured guarantees of this debt issued by Altera Infrastructure LP), a comprehensive re-profiling of Altera’s bank lending facilities to better align cash flows with debt service obligations, and continued support from Altera’s sponsor , Brookfield. Additionally, Altera secured a commitment from Brookfield for $50 million in debtor-in-possession financing to help fund Altera’s restructuring process and ensure that normal course operations remain intact during the Chapter 11 process.

Along with the motions, Altera has filed a series of motions which, once approved by the Court, will allow the Company to operate in the normal course of business without interruption. These motions will also allow Altera to continue to meet its obligations to its employees, customers and suppliers without interruption on previously agreed upon schedules and terms.

Ingvild Sæther, CEO of Altera Infrastructure Group Ltd., said, “We are entering this phase of our balance sheet restructuring with the support of the majority of Altera’s secured lenders and equity sponsor Brookfield. We are confident that this Chapter 11 process will result in a comprehensive recapitalization transaction that will not only stabilize liquidity, but also shrink our balance sheet and improve Altera’s position for future growth.

Further information

Additional information about 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 the Altera Restructuring Information Line at +(949) 266-0151 (international) or (855) 300-3407 (toll-free in the United States).

Kirkland & Ellis LLP is acting as the company’s restructuring advisor, Jackson Walker LLP as the local advisor, FTI Consulting, Inc. as the financial advisor, Evercore Group LLC as the investment banker and Stretto as the Claims Agent and Notifier.

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 to its customers in the offshore oil and gas regions of the North Sea, Brazil and from the east coast of Canada. Altera’s fleet of 41 vessels includes floating production, storage and offloading units, shuttle tankers, floating storage and off-take units, long distance towing and offshore installation vessels and a maintenance and safety. The majority of Altera’s fleet is employed under medium-term stable contracts.

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

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