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Petrofac Ltd on Friday morning that it has entered into agreements to extend its revolving credit facility and both bilateral bank facilities to October next year. The London-headquartered company designs, builds, manages and maintains energy infrastructure and has its core markets in the Middle East and North Africa region. Petrofac and its lenders have agreed the 12-month extension of $252 million of its banking facilities. The amount represents 90% of Petrofac’s facilities existing on December 31, with proportionate reductions made in all three from the effective date. As of December 31, Petrofac’s external borrowing facilities included an $180 million revolving credit facility, of which $124 million was drawn, and two fully drawn term loans of $50 million each. The agreement’s terms include a phased amortisation matching the projected deleveraging of the balance sheet, and a waiver of Petrofac’s December 31 covenants. Petrofac’s leverage and interest cover covenants also will be replaced with minimum earnings before interest, tax, depreciation and amortisation, and liquidity covenants. Petrofac said that these were ‘better suited to the company’s near-term outlook’. Petrofac said that the above financing was in line with its strategy to pre-finance expected liquidity requirements for at least the next 12 months. Petrofac also said that it would publish its financial results for 2022 on Thursday next week, two days later than previously announced. It said this was to allow Petrofac and its auditor EY additional time to complete procedures. Petrofac said it does not anticipate any material changes to the positions set out in its trading update, released earlier this month. Shares in Petrofac were 0.8% higher at 65.00 pence in London on Friday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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