07 April 2021
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.
- 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.
- The Abu Dhabi Commercial Bank facility included a prepayment obligation on 31 March 2021.