ENSCO PLC (NYSE:ESV) To Extend Revolving Credit Facility Into 2022

760

ENSCO PLC (NYSE:ESV) reported that in connection with its pending deal of Atwood Oceanics, Inc., it has obtained commitments to extend the maturity date of its revolving credit facility to September 30, 2022 from initial maturity date of September 30, 2020 on an unsecured basis. This credit facility extension would offer additional financial flexibility and liquidity following the pending acquisition.

The details

If an amendment is implemented, availability under the credit facility would be $1.2 billion to September 30, 2022 from October 1, 2019, a jump from $1.1 billion under Ensco’s present revolving credit facility and a 2-year extension from the prevailing facility’s expiration. Under the change, the company would have borrowing capacity of $2 billion through September 30, 2019 as against $2.25 billion under prevailing terms. The amendment would offer for additional guarantees from specific Ensco entities and would comprise certain additional restrictions on company and its subsidiaries.

Carl Trowell, the CEO and President of Ensco, expressed that they are delighted with the support of their banking group and their recognition of the reinforced position that the company fleet will have following the deal of Atwood. With the planned extension of their revolver commitments into 2022, they further improve the pro forma firm’s financial flexibility through improved access to liquidity beyond 2019. They will continue to show one of the best liquidity profiles in the offshore drilling segment, giving them a competitive benefit as they move forward as a combined firm.

Jon Baksht, the CVO and SNP of Ensco, expressed that they are delighted that the intended revolving credit facility would be kept on an unsecured basis, enhance their total commitments beyond 2019 and offer them with improved financial flexibility over the imminent five years. Under the amendment, they would include a coverage ratio covenant for subsidiary assurances and have restrictions on definite non-operational measures when facility borrowings are due.

*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.