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with all the lenders to the company. The new financing agreements secure a
robust financial foundation:
¡ Main loan facility extended until 1[st] October 2023
¡ A fixed amortization schedule reinstated
¡ Interest margins unchanged
¡ No new equity or liquidity required
¡ Debt reduction of USD 45 million, equal to NOK 3.1 per share, through
reduction of subordinated convertible loan in exchange for a lowered conversion
strike price
¡ Pro forma NIBD reduced from 582 million to USD 537 million
¡ Available liquidity of approx. USD 96 million post refinancing
CEO Dag Skindlo comments:
âArcher is pleased to announce that we have agreed an extension and reduction of
the debt with the lenders under our loan facilities. Archer has demonstrated
considerable growth in EBITDA and EBIT over the last 2 years, and Archer has
reduced the leverage ratio from 16.2x in 2016 to 6.2x at the end 2019. The
improved financial results, with a year on year growth in EBITDA and EBIT of 30%
and 170% respectively, coupled with robust cash flow generation and a meaningful
liquidity buffer, have enabled us to secure these favorable amendments without
issuing new equity and keeping interest margins at competitive levels. The
agreed reduction in NIBD of 7.8% improves our credit metrics further, and the
extensions ensure a solid financial platform to navigate a turbulent and
challenging market environment.â
Revolving Credit Facility
Archer has concluded the negotiation with the lenders under the main facility
resulting in amendments to, and an extension of, the USD 610.8 million revolving
credit facility (the âRCFâ) and overdraft facilities.
The amendments to the RCF include:
¡ An initial decrease in the commitments by USD 31.7 million to a total of USD
579.1 million
¡ A 3 year extension of the final maturity to 1[st] October 2023
¡ Quarterly amortization of USD 4 million commencing 31 March 2021
¡ A cash sweep mechanism of excess liquidity above USD 90 million starting 31
December 2020
¡ Interest margin unchanged
¡ Amendments to the financial covenants with sufficient headroom to Archerâs
business plan
BNP/Hermes covered term loan
Archer has reached an agreement with BNP on the EUR 21.4 million outstanding
BNP/Hermes covered term loan that include:
¡ An extension of the final maturity until December 2022
¡ A EUR 10 million instalment on signing of the amendment agreement
¡ Quarterly instalments of EUR 1.4 million commencing in 2021
¡ Interest margin unchanged
¡ Amendments to the financial covenants with sufficient headroom to Archerâs
business plan
Subordinated Convertible Loan
Archer has reached an agreement with Seadrill that the principal and accrued
interest as per 31 December 2019 is reduced by 75%, and the new outstanding
amount will be USD 13 million. At the same time, the conversion price is
adjusted to USD 0.4 per share (from USD 2.083 per share). The final maturity is
extended until 1 April 2024.
The amendments to the loan agreements are subject to, inter alia, final
documentation and customary conditions precedent as well as well as Hermes
credit approval of the EUR 21.4 million BNP/Hermes covered loan.
For additional information please contact:
Dag Skindlo, Chief Executive Officer
Mobile: +47 982 26 624, Email: dag.skindlo@archerwell.com
About Archer
Archer is a global oil services company with a heritage in drilling and well
services that stretch back over 40 years. Employing more than 5000 people at 40
locations in 17 countries, from drilling services, well integrity &
intervention, plug & abandonment to decommissioning, Archer is focused on safely
delivering the highest quality services and products to the drilling and well
service markets. Visit our company website at www.archerwell.com
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
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