Petrofac Shares surged on Wednesday after the oil services provider said it extended its bank facilities by $ 700 million and net debt is expected to be better than expected.
With the “unanimous support” of its lenders, Petrofac has secured a $ 610 million extension of its existing revolving credit facility to June 2, 2022, with a six-month extension option, and a $ 90 million extension. dollars from its bilateral term facility with Abu Dhabi Commercial Bank until April 1, 2022.
The increased margin on these facilities reflects market conditions and remains competitive, the company said.
The existing financial covenants remain unchanged and will be tested on a quarterly basis. In accordance with Petrofac’s liquidity policy, the extended revolving credit facility includes a minimum liquidity clause of $ 100 million.
Petrofac said the revised $ 700 million facility represents a facility size reduction of $ 450 million, “in line with business requirements and reflecting the group’s transition to a small-cap business model.” Both facilities were to be reimbursed or prepaid by June 2 at the latest.
“The extension of these facilities, as well as the issuance of £ 300 million of commercial paper under the Covid corporate finance facility in February 2021, preserves the group’s strong liquidity position which was 1 , $ 3 billion as of March 31, “he said.
The group now plans to report net debt of $ 116 million as of Dec.31, 2020, above expectations, and said it continues to aim for elimination of net debt “as market conditions and allocations increase. contracts will be reinstated “.
At 1300 BST, stocks were up 8.6% to 105.70p.