London-based Ensco Rowan PLC disclosed June 3 that it is seeking amendments to indentures for senior notes issued by its subsidiary, Rowan Companies PLC, through consent solicitation.
The notes, which will be covered by the amendments, include 4.875% senior notes due 2022 with a principal amount of $620.8 million, 4.75% senior notes due 2024 with a principal amount of $398.1 million, 7.375% senior notes due 2025 with a principal amount of $500.0 million, 5.4% senior notes due 2042 with a principal amount of $400.0 million and 5.85% senior notes due 2044 with a principal amount of $400.0 million.
Ensco Rowan is currently evaluating an internal reorganization with some of its subsidiaries, which would result in the parent firm becoming an obligor under the indentures. The amendment will allow the covenants governing the senior notes to apply to Ensco Rowan rather than Rowan Companies.
The parent firm also seeks to amend the indenture governing the 7.375% senior notes due 2025, which allows for a change of control after an internal reorganization and a ratings decline from both Moody's and S&P Global Ratings. Under the amendment, an internal reorganization and a ratings decline will not result in a change of control.
Ensco Rowan is the merged entity of Ensco PLC and Rowan Companies. The deal was announced in October 2018 and was closed in April.