US$700 million facility extensions agreed

Petrofac (“Petrofac” or the “Group”) is pleased to announce that it has extended US$700 million of its banking facilities, at its request, with the unanimous support of lenders. These extensions comprise a US$610 million extension of its existing revolving credit facility to 2 June 2022, with an option to extend for a further six months (1), and a US$90 million extension of its bilateral term facility with Abu Dhabi Commercial Bank to 1 April 2022 (2). 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. In line with our liquidity policy, the extended revolving credit facility includes a minimum liquidity covenant of US$100 million. The revised facilities of US$700 million represent a reduction in facility size of US$450 million, in line with business requirements and reflecting the Group’s transition to a capital light business model. Both facilities were due to be repaid or prepaid on or before 2 June 2021.

The extension of these facilities, together with the issue of £300 million in commercial paper under the Covid Corporate Financing Facility in February 2021, preserve the Group’s strong liquidity position which was US$1.3 billion at 31 March (before the reduction in facility size announced in this release). The Group expects to report net debt of US$116 million as at 31 December 2020, better than expectations, and continues to target eliminating net debt as market conditions and contract awards recover.

Notes

1. The option to extend the revolving credit facility to 2 December 2022 is subject to the approval of lenders and is up to a maximum of US$550 million.
2. The Abu Dhabi Commercial Bank facility included a prepayment obligation on 31 March 2021.