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Vantage Drilling International Schedules Second Quarter 2016 Earnings Release Date and Conference Call
HOUSTON, TX--(Marketwired - August 04, 2016) - Vantage Drilling International ("Vantage" or the "Company") today announced that it will host a conference call at 11:00 AM Eastern Time on August 11, 2016 to discuss operating results for the second quarter of 2016 and recent developments. Vantage will release earnings before the market opens on August 11, 2016. Vantage's earnings release will be posted to the Vantage website at www.vantagedrilling.com.
To access the conference call, U.S. callers may dial toll free 888-600-4861 and international callers may dial 913-312-0384. The pass code will be 5163974. Please call ten minutes ahead of time to ensure proper connection. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing 888-203-1112 for U.S. callers and 719-457-0820 for international callers. The access code for the replay is 5163974.
About the Company
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and four ultra-premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.
[http://www.marketwired.com/press-release/vantage-drilling-international-schedules-second-quarter-2016-earnings-release-date-conference-2148221.htm, Accessed AUG 4 2016]
Public Current Official SEC files pertaining to Vantage Drilling:
US Securities and Exchange commission filings_Enter cik# into the Fast Search field: https://www.sec.gov/edgar/searchedgar/companysearch.html
VANTAGE DRILLING COMPANY CIK#: 0001419428 (see all company filings)
…Above gives VDC aka VTGDF filings…
VANTAGE DRILLING INTERNATIONAL CIK#: 0001465872 (see all company filings)
…Above gives VDI filings…
Banked profit is banked coin...no high frequency computers can take it away...congrats! Sell rips and buy dips...keep some of your core till target ...reload rest of core and traders lower...GL
DEFINITION of 'Senior Convertible Note'
A debt security that contains an option where the note will be converted into a predefined amount of the issuer's shares. A senior convertible note has priority over all other debt securities issued by the same organization.
Since the bondholder receives two benefits not found on a normal bond issue (a call option and first priority for recourse in the event that the issuer goes bankrupt), the amount of interest offered to the bondholder will tend to be lower than on any other bond offered by the same issuer.
BREAKING DOWN 'Senior Convertible Note'
The worst-case scenario would be if the issuing company initially performed well, meaning that the debt would be converted into shares, and subsequently went bankrupt. The converted shares would become worthless, but the holder of the note would no longer have any recourse.
http://www.investopedia.com/terms/s/senior-convertible-note.asp
...WHY oh WHY did Anchorage convert its SENIOR NOTE into VTGDF shares in Q4 2015 at a price of $2.39 per share? Ulrich is a Goldman Sach's alumni...I think the logical answer to the VTGDF saga will come, in part, from this question...we all shall see...
https://www.sec.gov/Archives/edgar/data/1300714/000090514815000331/efc15-137_fmsc13g.htm, accessed July 28 2016
https://www.sec.gov/Archives/edgar/data/1300714/000090514816001385/efc16-152_fmsc13ga.htm, accessed July 28 2016
VTGDF is now an open book thanks to the SEC...this is a group effort for profit...
I am always looking for facts that strenghen and weaken by investment thesis...I never thought we would see these prices for VTGDF shares again...great loading zone...lots of buys/sells today...some of my buys were made to look like sells by the HF computers...GL
https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_17, accessed July 28 2016
Good post...regarding "And with VTGDF being publicly traded, that is a problem for them. VTGDF have already canceled any unsold shares which is a sign of a possible buy out in the future."...it is much cheaper for the debt holders to buy out VTGDF's VDI shares than to convert the debtholder's portion of the 2030 note to VDI shares...gl
Good post...Mid Aug next earnings report, maybe PetroBras lawsuit results, hedge fund declarations, etc...VTGDF makes over $400,000 per day revenue...I added shares today...will bid on more tomorrow...GL
What are your thoughts on the probability of VTGDF shares getting bought out and taken private by the VDI debt holders?
What are your thoughts on the probability of success of the PetroBras lawsuit regarding the remaining $1 billion portion of the cut short contract?
How patient do you think the debtholders will be through the next 4 years of 1% interest/a on their convertible ~$450 million 1%/12% new 2030 VDI note...do you think they will want to convert to VDI shares or will they wait till ~2020 and to begin collecting the much better 12% interest per annum?
BTW Good post.
..we are going is circles...to clarify: VDI shares are now held by VTG debt holders and VTG common shareholders....VTGDF debt holders were given some new VDI shares and some new VDI debt aka the convertible note..which matures in 2030 and is convertible at a minimum cost of ~$96.
Link: [p93, https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12]
...one of the reasons the S-1 was filed, was to enable the holders of the stapled securities to begin trading them within 2 months or so of the filing date...this is another catalyst for VTGDF...
....enjoy another wonderful summer evening.
Bidding VTGDF at $0.0085...
I prefer official June 16 2016 SEC files and outside counsel...the relationship between VTGDF and VDI and within VDI is unique...this is free enterprise...GL
...putting the staple back in place, the conclusion is, in this unique case, former VTGDF debt holders are now current VDI shareholders (referred to as ordinary shares) AND former VTGDF debt holders are now current VDI debt holders (referred to as stapled securities)....so we are both correct :)
Via June 16 2016 SEC file: https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12, accessed July 27 2016.
VDI Shareholders are also VDI Debt holders under the finished effective Feb 10 2016 reorganization: ...from the official June 16 2016 S-1 SEC filing:
The following table summarizes the components of our pre-bankruptcy debt, all of which was reflected as Liabilities Subject to Compromise (“LSTC”) in our consolidated balance sheet as of December 31, 2015 (in thousands):
2017 Term Loan and accrued interest $ 326,420
2019 Term Loan and accrued interest 344,738
7.5% Senior Notes and accrued interest 1,136,748
7.125% Senior Notes and accrued interest 736,550
Old Credit Agreement 150,000
Liabilities Subject to Compromise $ 2,694,456
Pursuant to the terms of the Reorganization Plan, the LSTC were retired on the Effective Date by issuing the debtholders securities in the reorganized Company, consisting of one new ordinary share of the reorganized Company (the “New Shares”) and $172.61 of principal of the 1%/12% Step-Up Senior Secured Third Lien Convertible Notes due 2030 (the “Convertible Notes”). The New Shares and the Convertible Notes are issued subject to the terms of an agreement that prohibits the New Shares and Convertible Notes from being transferred or exchanged separately. For every $1,000 of principal, a note holder received 1.722798 New Shares and $297.37 of principal of Convertible Notes for the 2017 Term Loan, 1.725087 New Shares and $297.77 of principal of Convertible Notes for the 2019 Term Loan, 1.786070 New Shares and $308.29 of principal of Convertible Notes for the 7.5% Senior Notes, and 1.728569 New Shares and $298.37 of principal of Convertible Notes for the 7.125% Senior Notes. In total, these debtholders received 4,344,959 New Shares under the Reorganization Plan.
The Convertible Notes are convertible into New Shares in certain circumstances, at a conversion price (subject to adjustment in accordance with the terms of the Indenture for the Convertible Notes) which was $95.60 as of the issue date.
[p f5, https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12, accessed july 19 2016]
...so VTGDF is in a unique situation...its common shares are part of a company (VDI) whose common shareholders are also debtholders...
...If you have questions, pls ask....gl
Thanks for your insight...I agree VTGDF benefits when VDI benefits...and VTGDF suffers when VDI suffers....why because 100% VTGDF is 13.10% VDI
...Nice 0.8 million share transaction (buy & sell & High Frequency computers trading among themselves & Market Makers attempting to fill large orders on the sly...lots of masks at play here) at 10:00am today and nice 0.9 million share transaction at 1:25pm today...volume picking up...GL
Former VTGDF debtholders are now currently VDI shareholders. 87% of the current VDI shareholders were former VTGDF debtholders...(The remaining 13% is the $62 million of VTGDF common shares)
...Proof debtholders are now shareholders: Using the trustworthy official June 16 2016 public SEC S-1 file:
The following table summarizes the components of our pre-bankruptcy debt, all of which was reflected as Liabilities Subject to Compromise (“LSTC”) in our consolidated balance sheet as of December 31, 2015 (in thousands):
2017 Term Loan and accrued interest $ 326,420
2019 Term Loan and accrued interest 344,738
7.5% Senior Notes and accrued interest 1,136,748
7.125% Senior Notes and accrued interest 736,550
Old Credit Agreement 150,000
Liabilities Subject to Compromise $ 2,694,456
Pursuant to the terms of the Reorganization Plan, the LSTC were retired on the Effective Date by issuing the debtholders securities in the reorganized Company[color=red][/color], consisting of one new ordinary share of the reorganized Company (the “New Shares”) and $172.61 of principal of the 1%/12% Step-Up Senior Secured Third Lien Convertible Notes due 2030 (the “Convertible Notes”). The New Shares and the Convertible Notes are issued subject to the terms of an agreement that prohibits the New Shares and Convertible Notes from being transferred or exchanged separately. For every $1,000 of principal, a note holder received 1.722798 New Shares and $297.37 of principal of Convertible Notes for the 2017 Term Loan, 1.725087 New Shares and $297.77 of principal of Convertible Notes for the 2019 Term Loan, 1.786070 New Shares and $308.29 of principal of Convertible Notes for the 7.5% Senior Notes, and 1.728569 New Shares and $298.37 of principal of Convertible Notes for the 7.125% Senior Notes. In total, these debtholders received 4,344,959 New Shares under the Reorganization Plan.
The Convertible Notes are convertible into New Shares in certain circumstances, at a conversion price (subject to adjustment in accordance with the terms of the Indenture for the Convertible Notes) which was $95.60 as of the issue date.
[p f5, https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12, accessed july 19 2016]
...all former debt is now equity in VDI
...VTGDF $62 million note gets special official mention in the SEC file: https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12
...hope this is clear...if you have any questions, pls ask.
Have a wonderful summer evening...
The debtors of vtgdf are now shareholders of vdi....that is what trading debt for equity was partially about in Feb 2016..so if vdi is bought out, debt holders are bot out and vtgdf gets 13.1%...York gets about 15%...Anchorage gets about 10% and so on...the staples can get removed and equity can b e purchased at a cost of about $96...gl
If someone buys private VDI...public VTGDF Gets 13.1%...reorganization was completed back in Feb 2016...public old knowledge...nice loading zone here...gl
PS...i want seven up to find public facts that do contradict my investment...i want seven up to weaken my investment...stress test it..if I am wrong i'll lighten holdings up...but nothing yet...so adding...gl
Nice 1.3 million share buy at 1:15 PM today...gl
Take a look: Bob Tamburrino (Chief Restructuring Officer VTG)
Q Investments Operating Partner (1996 – current)
Executive, Operating and Finance Roles:
Milgard Manufacturing (2004 -2006)
Werner Co (1998- 2002)
Usinor Sacilor (1991-1998)
Rome Cable Corp. (1984 – 1990)
KPMG (1978-1984)
http://vantagedrilling.com/about-vantage/management-team/, accessed July 25 2016
....KPMG was where the former Chief Restructuring Officer for VTGDF began his career...interesting correlation...Did KPMG have leverage?
Why did VTG not undergo Chapter 7 liquidation? They chose Chpt 11 and have emerged from it...Would Chpt 7 have been more costly? To whom?...I think lawyers may look into this...
...Q2 2016 results are due mid Aug 2016...likely looking profitable...
...Hedge funds must file within 75 days of June 30 2016...so look for more whale positions to be declared by Mid Aug 2016...
Catalysts are on deck...GL
Nice 170,000 share buy at 10:30am this morning...I wonder which Market Maker High Frequency computer owns the most shares?...Folks should consider reading some of "Flash Boys" written by a skilled HFT...GL
Alpha1974: Re: "...because they can not completely liquidate VTGDF because the current assets owned by VTGDF are officially owned by former debtors." I agree...see chart in the intro box above that lists the former VTGDF debtors as current equity holders in VDI
VTGDF owns 13.10% of VDI...which translate to about $0.20 per VTGDF share...yet Anchorage liquidated their $3M note for about 1 million VTGDF shares....which translates to about $3 per VTGDF share...so why did Anchorage agree to this conversion? Did Anchorage miscalculate or is there more than meets the eye here? Perhaps the pro rata share calculation is much more than $0.20?...perhaps more than $3.00...
As an aside, VTGDF is looking good technically for a swing up in pps....gl
Bot more shares during last hour of trade today...gl
DUST may pull back a bit...i just bot into or added to current positions based on the technicals (and fundamentals and back stories) of : TGZ.to, VTGDF, GALE, BRB.to, and DNG.to...thanks in part to your technical guidance, my network of trader friends made lots of coin in the last 12 months...have a great w/e!...gl
"Professor" KIY is an excellent teacher...when investors apply your patient teaching the random price swings become more technically predictable...combine kiy's technical insights applied to price charts with individual company fundamentals and keep an eye on overall market trends...banking of coin occurs...GL...
Agreed...what are your thoughts on the content of my stickied post?...anchorage was given a peek inside the vtgdf castle and converted a note to vtgdf shares worth about $2.50..
Thoughts?
Thanks...I will buy more...why?...partially because of this:
"VDC Note: Effective with the Company’s (VDI's) emergence from bankruptcy, VDC’s former equity interest in the Company was cancelled. Immediately following that event, the Company issued 655,094 New Shares to VDC in repayment of approximately $62.0 million, including accrued interest, for the VDC Note.
All trade payables, credits, wages and other related obligations were unimpaired by the Plan of Reorganization. The Plan of Reorganization allowed the Company to continue business operations during the court proceedings and maintain all operating assets and agreements. The Company had adequate liquidity prior to the filing and did not have to seek any debtor-in-possession financing."
[p58, https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm, accessed July 21 2016]
Huge upside from here...GL
seven-up...thanks for working as a mod here...I respect your insights...GL
I updated the intro box this evening by removing a redundancy in our joint composition...I noticed the following phrase was repeated twice when it really only needs to be said once:
"Effective February 10, 2016, Vantage Drilling International (formerly known as Offshore Group Investment Limited) is no longer associated with, or an affiliate of, Vantage Drilling Company, a Cayman Islands company in liquidation."
The current June 16 2016 SEC filing contradicts the above statement, but for a balanced perspective, it is good to keep it in the intro box.
[p93, https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12, accessed july 19 2016]
Seven-ups post from May 16 2016 answers your question:
"Vantage Drilling International and Vantage Drilling Company – Here’s what you need to know
April 10, 2016 by ieyenews Leave a Comment
12290461-14599393159039173_originGy Fun Trading From Seeking Alpha
Vantage Drilling International is the new name for Vantage Drilling after emerging from bankruptcy on February 11, 2016.
VTGDF sold all its assets to Vantage Drilling International and got a $61.477 million promissory note — 655k shares of the new shares (13.1%).
I do not recommend to invest in VTGDF or even trade the stock at all. The stock will have a very remote value when all is said and done.
Vantage Drilling (OTCPK:VTGDF)
Introduction:
I am certain I am not the only one here, who has been frustrated with this entire melodramatic saga, that started with the early termination of the Platinum Explorer by Petrobras who refused to compensate the company for nearly $1 billion in contract backlog loss. The Platinum Explorer was implicated in a bribery case called the car wash corruption scandal. Petrobras’ decision was a death sentence for Vantage.
On December 3, 2015:
12290461-14599593087295806Offshore Group Investment Limited, a Cayman Islands exempted company (“OGIL”), a wholly-owned subsidiary of Vantage Drilling Company (the “Company”), and certain subsidiaries of OGIL (together with OGIL, the “Vantage Debtors”) filed voluntary petitions (“Bankruptcy
Petitions”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under the provisions of chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) to pursue a pre-packaged chapter 11 plan of reorganization (the “Plan”).
Screen Shot 2016-04-09 at 8.33.06 AMWhat is important for VTGDF shareholders is the following:
The Company will have sold to OGIL its equity interests in Vantage International Management Company Pte. Ltd. (“VIMCO Singapore”) and Vantage Energy Services, Inc. (“VESI”, and collectively with VIMCO Singapore, the “Vantage Parent Assets”) in exchange for a promissory
note, which sale was effected pursuant to the terms of a Share Purchase Agreement dated as of December 2, 2015, by and among the Company, OGIL, VIMCO Singapore and VESI…
On January 15, 2016 The Court confirmed the Plan of reorganization which became effective on February 10, 2016.
Vantage filed a Joint Prepackaged Chapter 11 Plan of Reorganization on December 3, 2015 and emerged from those proceedings on February 10, 2016. In connection with the reorganization, Vantage recognized charges totaling approximately $39.4 million consisting primarily of the write-off of deferred financing costs and unamortized original issued debt discounts, and professional fees.
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs.
This reorganization was partial in essence, whereas Vantage Drilling Co. is still in liquidation in the Cayman Islands. KPMG, in the Cayman Islands, is the auditing firm handling the liquidation.
VTGDF owns a promissory note that has been estimated to be worth $61.477 million, due December 2016:
Section 1.02 Purchase Price. In consideration for the purchase and sale of the Purchased Shares and the contribution of the Seller VESI Receivable to the capital of VESI, Buyer shall pay to Seller $61,477,000 (the “Purchase Price”), which shall be paid in the form of that certain Secured Promissory Note issued by Buyer to Seller, dated as of the date hereof, in the amount of the Purchase Price and attached hereto as Exhibit A (the “Note”), which Note, along with the obligations of Buyer thereunder, is secured pursuant to the terms of that certain Security Agreement, dated as of the date hereof, entered into by Buyer and Seller and attached hereto as Exhibit B (the “Security Agreement”)
Final note on the relationship between Vantage Drilling International and VTGDF:
Vantage Drilling International (formerly known as Offshore Group Investment Limited, OGIL) is a private company who owns the “Vantage Fleet”, and VTGDF is only a shell company currently in liquidation, which owns a promissory note worth $61.477 million, that should be repaid before December 2016.
Note: In the last conference call, Vantage Drilling International said it has issued 655K new shares representing 13.1% of the outstanding shares of the new company to Vantage drilling Co. — 5 million — in exchange of the promissory note. I was not able to confirm it, because I could not access the last 10K filing.
In my opinion, VTGDF is not worth much, after deducting all liabilities, I do not see what can be left to shareholders?
The question remains about the Platinum Explorer and the arbitration against Petrobras? It is hard to imagine Petrobras – which is a National Oil Company NOC – to be forced to pay an early termination fee. However, we cannot totally eliminate a possible favorable decision against Petrobras. However, any proceeds will go to Vantage Drilling International.
Fleet status of Vantage Drilling International. – See attachment
A quick look at the Vantage Drilling International balance sheet on 12/31/2015 shows that the promissory note was classified as a liability “note payable to parent”, but will be exchanged with 655k shares or 13.1% of the total outstanding of Vantage Drilling International.
The future outlook is quite negative for Vantage Drilling International with a very limited contract backlog in 2016-2018. The company could be an excellent candidate for a takeover at a distress price, due to the quality of the fleet.
VTGDF chart: See attachment
Conclusion:
On February 19, 2016, Vantage Drilling International announced (my article) the following:
Vantage Drilling International signed an agreement for a two-year extension of the Tungsten Explorer contract; the ultra-deepwater drillship will now work until October 2018, the company said Feb. 19.
Quickly after the news, VTGDF jumped from 0.003 to 0.02+, and it was evident that the rally was directly correlated to the news of the Tungsten Explorer contract extension.
I do not recommend to invest in VTGDF or even trade the stock at all. The stock will have a very remote value when all is said and done, in my opinion.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
http://www.ieyenews.com/wordpress/tag/cayman-islands/page/11/"
Publicly traded VTGDF OWNS 13.10% OF Privately held VDI
[p93, https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12, accessed july 19 2016]
Out of date pre-reorganizational irrelevant reference from Dec 2015...lots has happened since then...like Trump being the republican nominee...for multinational Vantage Drilling clarity check June 16, 2016 S-1 SEC VDI filing...took me a couple of Saturdays to read it all...but it was a good read...I bot another 300,000 shares...will be buying more...I tend to buy with profits from my trades...I hold a core of shares and trade the rest...what about you...are you a technical trader or more of a fundamentalist? gl
Correct...Chapter 11 completed is old news...it is now almost August 2016...the recent VDI June 16 2016 S-1 SEC filing has all the info one needs to connect the dots and ascertain the great risk reward here with VTGDF...literally 900 plus pages of publicly available official info in the S-1...GL
VTGDF is part owner of VDI
The current June 10, 2016 SEC filing clearly states the relationship between VTGDF and VDI...VTGDF owns 13.10% of VDI...VDI purchased VTGDF's $62,000,000 of assets (and attributed no liabilities to VTGDF) for 655 094 VDI shares...which calculates to approximately $94.50 per ordinary share of VDI...
I am not pumping...simply stating the publicly available facts...
(Granted the relationship history is quite complicated)
Other publicly available facts...
1. The ~$1,100,000,000 lawsuit that VTGDF has with
Petrobas. [http://seekingalpha.com/article/3543636-vantage-drilling-shareholders-can-expect-deutsche-bank-conference, accessed July 21 2016]
2. Most of the current VDI management team have Petrobas lawsuit incentive clauses recently built into their current employment contracts with VDI..they are expecting a chunk of the billion dollar lawsuit to end up in their pockets and by extension in our VTGDF shareholder pockets.
3. Mr Su's involvement with VDI and the now completed bankrupcy procedings...VDC aka VTGDF has emerged from bankrupcy...as you know...back in Feb 2016...it is now July 2016...
4. The price of one barrel of oil in Feb 2016 compared to the current July 2016 price...as oil rises, VDI rises in value and by extension, VTGDF rises in value...VTGDF owns 13.10% of VDI.
Good luck.
The official June 16 2016 filing clearly states the 13.10% association between VTGDF and VDI...
Further, the misleading sentence states that VDC is in liquidation in CI...but that not currently true: We both know VTGDF / OGIL have emerged from Chap 11. Proof: "15 January 2016
Offshore Group Investment Limited (Also Known as Vantage Drilling) Receives Court Approval of Prepackaged Restructuring and Recapitalization PlanHOUSTON, TX--(Marketwired - Jan 15, 2016) - Offshore Group Investment Limited (OTC PINK: VTGDF) ("OGIL" or the "Company") today announced that the Company and its affiliated chapter 11 debtors have received court approval of their prepackaged restructuring and recapitalization plan (the "Prepackaged Plan") pursuant to an order dated January 1..."
followed by
"10 February 2016
Offshore Group Investment Limited (Now Known as Vantage Drilling International) Successfully Completes Prepackaged Restructuring
HOUSTON, TX--(Marketwired - Feb 10, 2016) - Offshore Group Investment Limited ("OGIL" or the "Company") today announced that it has successfully completed its prepackaged restructuring and recapitalization and emerged from chapter 11 bankruptcy protection.
Through its prepackaged chapter 11 plan, OGIL eliminated more than $1.5 billion..."
Both quotes from VDI's website: http://vantagedrilling.com/vantage-news/, accessed July 21 2016
Incorrect...SEC filings in intro clearly state VDC is part owner of VDI, as are all the debt holders that traded debt for stapled securities that may be converted to ordinary shares at a cost of $95.60...
VANTAGE DRILLING CO filed this SC 13G/A on 02/16/2016
As of December 31, 2015, each of the Reporting Persons may be deemed the beneficial owner of approximately 0.4% of Shares outstanding. (There were 311,836,678 Shares outstanding as of October 23, 2015, according to the Issuer's Form 10-Q, filed November 9, 2015. Each of the Reporting Persons may be deemed the beneficial owner of approximately 1,381,475 Shares obtainable upon conversion of $3,300,000 of the Notes. Pursuant to Rule 13d-3(d)(1)(i)(D), such Shares have been added to the Issuer's number of Shares outstanding, for a total of approximately 313,218,153 Shares outstanding.)
So, VTGDF pps could be calculated as $3,300,000 / 1,381,475 shares = $2.39 per share. PPS in Q4 2015 ranged from 0.20 to 0.00...yet Anchorage traded its convertible notes for VTGDF shares valuing their acquired VTGDF shares at $2.39 each. Huge upside here...holding and adding.
[https://www.sec.gov/Archives/edgar/data/1300714/000090514816001385/efc16-152_fmsc13ga.htm , accessed July 19 2016]
BREAKING DOWN 'Enterprise Value (EV)'
Enterprise value can be thought of as the theoretical takeover price if the company were to bought. In the event of such a buyout, an acquirer would generally have to take on the company's debt, but would pocket its cash for itself. EV differs significantly from simple market capitalization in several ways, and many consider it to be a more accurate representation of a firm's value.
The value of a firm's debt, for example, would need to be paid by the buyer when taking over a company, thus enterprise value provides a much more accurate takeover valuation because it includes debt in its value calculation.
Read more: Enterprise Value (EV) Definition | Investopedia
http://www.investopedia.com/terms/e/enterprisevalue.asp, july 19 2016
Vantage Drilling CO CIK#: 0001419428 (see all company filings)
…Above gives all VTGDF aka VDC aka VTG sec edgar filings…
VANTAGE DRILLING INTERNATIONAL CIK#: 0001465872 (see all company filings)
…Above gives all VDI sec filings…
Reorganization Value: Reorganization value represents the fair value of the Successor’s total assets and is intended to approximate the amount a willing buyer would pay for the assets immediately after restructuring. Under fresh-start accounting, we allocated the reorganization value to our individual assets based on their estimated fair values.
Our reorganization value is derived from an estimate of enterprise value. Enterprise value represents the estimated fair value of an entity’s long term debt and shareholders’ equity. The estimated enterprise value of the Company of approximately $954.2 million represents management’s best estimate of fair value on the Effective Date and the value contemplated by the Bankruptcy Court in confirmation of the Reorganization Plan after extensive negotiations among the Company and its creditors. The estimated enterprise value, after adding cash plus the estimated fair values of all of the Company’s non-debt liabilities, is intended to approximate the reorganization value. A reconciliation of the reorganization value is provided in the table below:
(in thousands)
Enterprise value $ 954,242
Plus: Cash, cash equivalents and restricted cash 250,046
Plus: Working capital surplus 712
Plus: Current liabilities 80,284
Reorganization value of Successor assets $ 1,285,284
Reorganization value and enterprise value were estimated using numerous projections and assumptions that are inherently subject to significant uncertainties and resolution of contingencies that are beyond our control. Accordingly, the estimates set forth herein are not necessarily indicative of actual outcomes, and there can be no assurance that the estimates, projections or assumption will be realized.
In order to estimate the enterprise value of the Company, we used a discounted cash flow methodology. The discounted cash flow analysis estimates the value of a business by calculating the present value of expected future unlevered after-tax free cash flows to be generated by such business. This analysis is supported through a comparison of indicated values resulting from the use of other valuation techniques including: (i) a comparison of financial multiples implied by the estimated enterprise value to a range of multiples of publicly held companies with similar characteristics, and (ii) an analysis of comparable valuations indicated by precedent mergers or acquisitions of such companies.
F-10
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The financial projections used to estimate the expected future unlevered after-tax free cash flows were based on our 5-year forecast. The projections were prepared by management and are based on a number of estimates including various assumptions regarding the anticipated future performance of the Company, industry performance, general business and economic conditions and other matters, many of which are beyond our control. The discounted cash flow method also includes assumptions of the weighted average cost of capital (the “Discount Rate”) as well as an estimate of a residual growth rate used to determine the enterprise value represented by the time period beyond the 5-year plan. The Discount Rate was calculated using the capital asset pricing model and resulted in a Discount Rate of 15.2%. The estimated residual growth rate was developed considering the long-term economic outlook of the industry and geographical regions that the Company operates in and resulted in an estimated rate of 2.0%.
[p f10, https://www.sec.gov/Archives/edgar/data/1380565/000119312516623667/d207238ds1.htm#tx207238_12, accessed july 19 2016]
Relatively current vtgdf pps projection: $1,285,284,000 cost to buy VDI / 5,000,053 shares outstanding = $257.05 per share to buy out VDI on June 17 2016. Thus VDC’s share is (655,094 new shares / 313,218,153 VTGDF old shares) times $257.05 = $0.538 per VTGDF aka VTG aka VDC old shares. Huge upside here using VDI's own value of itself following reorganization.
Nice day...higher highs day by day...where will the pps be on Dec 4, 2016...ten times, one hundred times, one thousand times today's pps,...nice buys last couple of days....gl
Bot some more on this dip...GL...