Diamond Offshore recently relisted after emerging from chapter 11 bankruptcy. Shortly after relisting, the company experienced a steep decline in share price, due to equitized creditors exiting due to mandates. Since relisting, the stock is trading between the $6.8 – $7 range. With 100m shares outstanding (roughly 107.5m fully diluted), it has a market cap of just under $700m. After emerging from bankruptcy, $2.1 billion in debt was equitized, leaving Diamond with a net debt position of $200m as of today. A $400m revolver that is due in 2026 is the first debt to mature and has $90m drawn. Given the post-restructuring debt profile, Diamond should have a liquidity runway that is sufficient to keep them afloat for the next several years while the industry picks up.
Full write up here: https://alphahunter.substack.com/p/diamond-offshore?s=w
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