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.
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.