Petrofac Agrees $700MM Facility Extensions

Petrofac Agrees $700MM Facility Extensions
Petrofac announced Wednesday that it has extended $700 million of its banking facilities, at its request, with the unanimous support of lenders.

Petrofac announced Wednesday that it has extended $700 million of its banking facilities, at its request, with the unanimous support of lenders.

The extensions comprise a $610 million extension of its existing revolving credit facility to June 2, 2022, with an option to further extend up to $550 million of that for a further six months subject to the approval of lenders, and a $90 million extension of its bilateral term facility with Abu Dhabi Commercial Bank to April 1, 2022.

Petrofac noted that the increase in margin on these facilities reflects market conditions and remains competitive. Existing financial covenants remain unchanged and will be tested on a quarterly basis, the company said. Both facilities were due to be repaid or prepaid on or before June 2, 2021.

“The revised facilities of $700 million represent a reduction in facility size of $450 million, in line with business requirements and reflecting the group’s transition to a capital light business model,” Petrofac said in a statement posted on its website.

“The extension of these facilities, together with the issue of $412.6 million (GBP 300 million) in commercial paper under the Covid Corporate Financing Facility in February 2021, preserve the group’s strong liquidity position, which was $1.3 billion at 31 March,” Petrofac added in the statement.

“The group expects to report net debt of $116 million as at December 31, 2020, better than expectations, and continues to target eliminating net debt as market conditions and contract awards recover,” Petrofac went on to state.

Petrofac - which designs, builds, manages, and maintains infrastructure for the energy industries - has 31 offices and around 10,700 staff worldwide, comprising more than 80 nationalities, according to its website. Its client portfolio includes many of the world’s leading integrated, independent, and national oil and gas, and renewable energy companies, Petrofac highlights on its site.

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