1. Vallourec to redeem $82 million of senior notes due 2032. 2. Redemption optimizes capital structure and reduces borrowing costs. 3. Shareholder distributions remain intact at 80-100% of cash generation. 4. Transaction indicates commitment to maintain a strong balance sheet. 5. CEO emphasizes low leverage and strong liquidity for market resilience.
The redemption of notes decreases future liabilities and interest expenses, enhancing financial stability. Similar strategies in the past have resulted in increased investor confidence, reflected by stock price appreciation.
The announcement is significant due to immediate financial implications, which could influence investors' buying behavior. Improving capital structure and reducing interest are critical for future performance.
Immediate effects on investor sentiment due to improved financial metrics. Redemption promises direct benefits within a few quarters as reduced borrowing costs improve profitability.
VALLOUREC ANNOUNCES PARTIAL REDEMPTION OF SENIOR NOTES DUE 2032
Meudon (France), on September 3rd, 2025 – Vallourec, a world leader in premium tubular solutions, announces today its intention to proceed with the partial redemption of its senior notes maturing in 2032 (the "Notes") for an amount of $82 million (corresponding to 10% of the aggregate principal amount of the Notes), in accordance with the terms and conditions of the Notes.
The redemption of the Notes further optimizes the Group's capital structure and reduces borrowing costs. Vallourec reconfirms its target of distributing 80-100% of total cash generation to its shareholders, and notes that this transaction does not materially reduce or alter the amount available for such distributions.
The Notes shall be redeemed at a redemption price equal to 103% of the principal amount of the Notes to be redeemed, plus the accrued and unpaid interest, if any, to but excluding the redemption date set for September 13th, 2025, in accordance with the terms and conditions of the Notes. The payment related to this redemption will take place on the business day following the redemption date, which is September 15th, 2025.
Philippe Guillemot, Chairman of the Board of Directors and CEO of the Vallourec Group, commented: "This transaction is another step in our capital structure and return optimization. It has a rapid payback via our reduced interest cost and demonstrates our commitment to maintain a crisis proof balance sheet with low leverage and strong liquidity to ensure Vallourec's success in any market condition."
Forward-Looking Statements
This announcement constitutes a public disclosure of inside information under Regulation (EU) 596/2014, as amended.
This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such offer, solicitation or sale would be unlawful.
This press release includes forward-looking statements within the meaning of the applicable securities law. All statements other than statements of historical fact included herein are forward-looking statements. These statements may include, without limitation, any statements preceded by, followed by or including words such as "aim", "anticipate", "believe", "can have", "could", "estimate", "expect", "intend", "may", "plan", "seek", "should", "will" "would" and other words and terms of similar meaning or the negative thereof. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which it will operate in the future. The Group therefore cautions against relying on any of these forward-looking statements. The forward-looking statements and information contained in this press release are made as of the date hereof, and the Group undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
About Vallourec
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. Vallourec's pioneering spirit and cutting-edge R&D open new technological frontiers. With close to 13,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible.
Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service.
In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.
For further information, please contact:
Investors relations:
Connor Lynagh
Tel : +1 (713) 409-7842
connor.lynagh@vallourec.com
Individual shareholders:
Toll free number (From France): 0 805 65 10 10
actionnaires@vallourec.com
Press media Relation: Taddeo
Romain Grière
Tel : +33 (0)7 86 53 17 29 romain.griere@taddeo.fr
Nicolas Escoulan
Tel : +33 (0)6 42 19 14 74 nicolas.escoulan@taddeo.fr
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