Vallourec progresses its holistic balance sheet refinancing with successful pricing of its 2032 Senior Notes offering

Vallourec progresses its holistic balance sheet refinancing with successful pricing of its 2032 Senior Notes offering

Meudon (France), April 18, 2024 – Vallourec S.A., (the “Company” and, together with its subsidiaries, the “Group”), a world leader in premium tubular solutions, announces today that it has successfully priced an offering of Senior Notes due 2032 (the “Notes”) in an aggregate principal amount of $820 million, which will be issued at par and will bear interest at a rate of 7.500% per annum. The offering of the Notes is expected to close on April 23, 2024, subject to customary closing conditions.

Upon completion, the proceeds from the offering of the Notes will be used, together with cash on hand, to (i) fund the redemption of the Company’s €1,023.4 million in aggregate principal amount of 8.5% senior notes due 2026 (the “Existing Notes”) and pay accrued and unpaid interest thereon, (ii) repay approximately €68 million outstanding under the Company’s existing state-guaranteed loans (PGE, prêts garantis par l’Etat) and pay accrued and unpaid interest thereon and (iii) pay fees and expenses in connection with the foregoing transactions, including fees and expenses incurred in connection with the offering.

Following the completion of its refinancing, Vallourec will have holistically reconfigured its balance sheet via:

• Entry into a new 5-year €550 million multi-currency revolving credit facility (RCF) with a substantially diversified, global banking group
• Entry into an upsized and extended 5-year $350 million ABL facility in the United States
• Issuance of the aforementioned 8-year $820 million 7.500% Senior Notes and redemption of its 8.5% Senior Notes due 2026
• Repayment of approximately €68 million of its €262 million PGE during the transaction and repayment of the remaining amount by December 31, 2024

Furthermore, Vallourec now maintains credit ratings with all three of the major ratings agencies. Next to its existing issuer rating with S&P, which has been upgraded once again and now stands at BB+, Outlook stable, Vallourec is pleased to welcome the addition of Moody’s and Fitch, which rate Vallourec Ba2, Outlook positive and BB+, Outlook positive, respectively.