Bermuda, 02 June 2021 - Reference is made to the financial indebtedness of Atlantica Tender Drilling Ltd. ("ATDL") consisting of (i) a senior bank facility (the "Senior Bank Facility") under which a principal amount of USD 53.7 million is outstanding to certain commercial banks (the "Senior Banks") and (ii) a bond issue under which a principal amount of USD 137.7 million is outstanding (the "Bond Loan") to certain bondholders (the "Bondholders"). All substantial assets of ATDL are pledged as security in favour of the Senior Banks on first priority and Bondholders on second priority as set per an arrangement included in an intercreditor agreement (the "Intercreditor Agreement"). 

Reference is further made to the press releases from ATDL on 12 April and 14 April 2021 regarding notice of default and cash sweep by the Senior Banks under the Senior Bank Facility. 

ATDL has today entered into a standstill agreement (the “Standstill”) under the Senior Bank Facility. Pursuant to the Standstill, no enforcement action or further cash sweep shall be undertaken by the Senior Banks in relation to defined defaults until such time as (i) the "BassDrill Beta" is safely warm stacked at a lay-up location to be agreed with the Senior Banks, (ii) there is a default not covered by the Standstill or (iii) the  longstop date of 31 December 2021 occurs. 

The Standstill is subject to exceptions after the expiry of the buy-out option for the Bondholders under the Intercreditor Agreement on 13 July 2021, so that the Senior Banks may: 

(i)	take enforcement actions against the mortgage over "Atlantica Delta" and/or share pledge over the company owning this rig; and

(ii)	apply the USD 28 million from the original cash sweep, as well as up to USD 2 million from an additional cash sweep, in accordance with terms set out in the Intercreditor Agreement.
 
Assuming the banks take such actions as set out in (ii) above, ATDL expects to have approximately USD 10 million in available liquidity thereafter in early July 2021. The Standstill includes an arrangement for management of liquidity for ATDL and its subsidiaries, as well as a mechanism which is intended to allow for coverage of ATDL’s trade creditors during the period of the Standstill.

The "Atlantica Delta" is warm stacked in Las Palmas, Canary Islands, Spain. It is expected that "BassDrill Beta" will be fully demobilized and off-hire from late July / August 2021. ATDL continues to pursue new opportunities and the sale of both rigs. There remains a high likelihood that both rigs will be off-hire and warm stacked from late Q3 2021.

Bondholders are currently prevented from taking enforcement action pursuant to the Intercreditor Agreement. ATDL remains in close dialogue with representatives of more than 50 percent of the Bondholders. ATDL continues to have a constructive dialogue with both the Senior Banks and Bondholders regarding the further way forward. 

For further information, please contact:
Reese McNeel
CFO
Atlantica Tender Drilling Ltd.
+47 415 08 186
reese.mcneel@atlanticatd.com