Petrofac has secured $700 million bank facility

London, April 7 - Neftegaz.RU. Petrofac has extended $700 million of its banking facilities at its request with the unanimous support of lenders.

The company said today that these extensions comprised a $610 million extension of its existing revolving credit facility to 2 June 2022, with an option to extend for a further six months, and a $90 million extension of its bilateral term facility with Abu Dhabi Commercial Bank to 1 April 2022.

An option to extend this further to 2 December 2022 up to a maximum of $550 million is subject to further approval by lenders.

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 the its liquidity policy, the extended revolving credit facility includes a minimum liquidity covenant of $100 million.

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.
Both facilities were due to be repaid or prepaid on or before June 2021.

Petrofac also stated that it expected to report net debt of $116 million as of 31 December 2020, better than expected, and continues to target eliminating net debt as market conditions and contract awards recover.