Noble Corporation plc (NYSE:NE) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET

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Noble Corporation plc (NYSE:NE) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Noble Corporation plc Second Quarter 2020 Results. [Operator Instructions]

I will now like to turn the conference over to your speaker for today Mr. Craig Muirhead, Vice President of Investor Relations and Treasurer.

Executive
Craig Muirhead

Thank you and welcome, everyone, to Noble Corporation's second quarter 2020 earnings conference call. We appreciate your continued interest in the company. You can find a copy of Noble's earnings report issued yesterday evening, along with the supporting statements and schedules on our website at noblecorp.com.

For today's call, we will not have a question-and-answer session at the end of the prepared remarks. Before I turn the call over to Robert Eifler, I'd like to remind everyone that we may make statements about our Chapter 11 filing restructuring, activities or plans, operations, opportunities, plans, operational or financial performance, the drilling business or other matters that are not historical fact and are forward looking statements that are subject to certain risks and uncertainties.

Our filings with the U.S. Securities and Exchange Commission, which are posted on our website, discuss the risks and uncertainties in our business and industry, and the various factors that could keep outcomes of any forward-looking statements from being realized including resolution of our Chapter 11 Cases, our ability to consummate our restructuring as contemplated, the impact of COVID-19 pandemic on Noble's operations, the price of oil and gas, customer demand, operational and other risks. Our actual results could differ materially from these forward looking statements and Noble does not assume any obligation to update these statements.

Also note, we are referencing non-GAAP financial measures in our call today. You will find the required supplemental disclosure for these measures, including the most directly comparable GAAP measure and an associated reconciliation on our website.

And with that, I'll now turn the call over to Robert Eifler, President and Chief Executive of Noble.

Executive
Robert W. Eifler

Thank you, Craig. As previously announced on July 31, Noble filed for Chapter 11 protection under the U.S. Bankruptcy Code. This was not a decision we made lightly or without evaluating a number of potential alternatives. We ultimately determined that a comprehensive restructuring path best position at Noble to meet the challenges we face in the current environment and to create a strong and appropriate financial foundation to support our industry leading operations.

We've signed a restructuring support agreement with several of our largest bondholders that plans to convert our bonds into equity in the reorganized company. And those bondholders have committed to invest an additional $200 million in the company. Additionally, a steering committee of our existing bank lenders has agreed in principal to a new $675 million revolving credit facility with our existing Bank Group.

We also have had discussions with the Paragon Litigation Trust, which we think is the right path to get to a resolution of this case, hopefully soon. While there is clearly work that remains to be completed before we emerge, we are very pleased to have