LEGAL ANALYSIS: Pacific Drilling debtholder group led by Avenue and SVP controls Ship Group C Debt class and 2020 notes tranche - Debtwire

LEGAL ANALYSIS: Pacific Drilling debtholder group led by Avenue and SVP controls Ship Group C Debt class and 2020 notes tranche

22 November 2017 - 12:00 am

An ad hoc group of Pacific Drilling debtholders filed a Rule 2019 showing over USD 1.3bn of debt holdings, split between USD 953.7m of Ship Group A debt and USD 353.7m of Ship Group C debt. In total, the group controls 49% of Pacific Drilling’s Ship Group A debt and 80.5% of the company’s Ship Group C debt.


The ad hoc group’s Ship Group A debt holdings consist of USD 526.1m of the USD 750m 5.375% senior secured notes due 2020 (70% of tranche), USD 391.5m of the USD 718m term loan B facility (54.5% of the tranche), and USD 36.1m of the USD 475m revolving credit facility (7.6% of the tranche). The group, however, does not hold any Ship Group B debt.




The seven-member group is led by Avenue Capital and Strategic Value Partners. Avenue holds USD 413m of Pacific Drilling debt (13.6% of total), while SVP controls USD 367m of company debt (12%). SVP is the group’s largest 2017 noteholder and term loan lender, controlling USD 124.3m of the 2017 notes (19%) and USD 180.7m of TLs (25%). Avenue controls 34% of the 2020 notes (USD 258m) and is the second largest 2017 noteholder (USD 73.3m/11% of tranche).


Abrams Capital Management has the third largest debt holdings in the group (USD 198.3m), followed by Fidelity Management & Research Company (USD 157.5m). Abrams’ and Fidelity’s largest positions are in the 2020 notes—USD 134.8m and USD 68.8m, respectively.




Whitebox AdvisorsCredit Suisse Asset Management, and Western Asset Management Company round out the group, which is represented by Paul Weiss Rifkind Wharton & Garrison and Houlihan Lokey.


CLICK HERE for Debtwire’s 2019 Holdings Report (in excel).
CLICK HERE for all Pacific Drilling Chapter 11 filings on Debtwire Dockets.


by Joshua Friedman


Joshua Friedman is a former practicing restructuring attorney. Prior to joining Debtwire, Joshua practiced in the New York offices of Kramer Levin Naftalis& Frankel LLP. He has represented various constituencies in several high-profile restructurings, including Hostess Brands, General Motors, CapmarkFinancial Group, and Lehman Brothers.


Any opinion, analysis or information provided in this article is not intended, nor should be construed, as legal advice, including, but not limited to, investment advice as defined by the Investment Company Act of 1940. Debtwire does not provide any legal advice and subscribers should consult with their own legal counsel for matters requiring legal advice.