Vallourec Launches €800 Million Rights Issue

February 20, 2020

Willkie’s Paris office represents Bpifrance in an €800 million capital increase for Vallourec, a French-based, leading provider of tubular solutions for the energy sector.

On February 19, Vallourec, a French-based, leading provider of tubular solutions for the energy sector, announced that it intends to raise approximately €800 million of new equity through a capital increase with preferential subscription rights (the Rights Issue) to significantly deleverage its balance sheet, reduce its financial charges by approximately €50 million per annum compared to 2019, and gain additional flexibility to implement its strategic plan.

Vallourec’s key reference shareholder, Bpifrance, represented by Willkie, has undertaken to subscribe to the Rights Issue pro-rata to its stake for Bpifrance. The Rights Issue is expected to be launched in Q2 2020.

Based in Boulogne-Billancourt, France, Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment.

The deal was handled by partner Daniel Hurstel.