Hamilton, Bermuda (December 23, 2015)
Archer Limited (the “Archer”) is pleased to announce that it has signed a fifth amendment and re-statement of its multicurrency revolving facility agreement (the “MRCFA”) which will provide Archer sufficient financial flexibility. The amendments to the multicurrency revolving credit facility include, among others, the following terms:
- A replacement of the existing leverage ratio covenant with a 12 months rolling minimum EBITDA of USD 30 million for the financial quarters up to and including Q2 2016 and USD 45 million thereafter up to and including Q1 2017.
- A replacement of the existing equity ratio covenant, with a minimum equity of USD 100 million for the financial quarters up to and including Q1 2017.
- A consent from the lenders to the contribution of the Well Services Entities to Quintana Energy Services, as described in the announcement on November 23, 2015.
- An immediate non-cash cancellation of the total commitment under the MRCFA from USD 750 million to USD 687.5 million
- An immediate non-cash cancellation of the commitments under each of its overdraft facilities from USD 50 million to USD 45.83 million.
- A further repayment and cancellation of the commitment under the MRCFA from USD 687.5 million to USD 625 million and a further reduction of the overdraft facilities from USD 45.83 million to USD 41.67 million by April 30, 2016.
Seadrill Limited has agreed to provide new financing to Archer in an aggregate amount of up to USD 75 million in the event that Archer will not have sufficient funds for the above mentioned repayment and cancellation of the commitments under the facilities by April 30, 2016.
Christoph Bausch, Executive Vice President & Chief Financial Officer of Archer, said, “We are pleased to finalize this amendment to our MRCFA and we would like to thank our lenders as well as Seadrill for their continuous commitments towards Archer during this difficult time in our industry. The amended terms represent a positive development for our company and will provide us with the required financial flexibility to manage our business during this downturn well into 2017. Furthermore, it will enable us to complete the announced combination of our Well Services Entities in North America with Quintana Energy Services which in turn will allow us to increase our focus on the remaining businesses to better position them for the long-term success.”