ADES International Signs GBP450 Million Facility For New Acquisitions

LONDON (Alliance News) - Oil and gas services provider ADES International Holding Ltd said Friday that it has signed a USD450.0 million syndicated credit facility to refinance its existing debt and give flexibility to pursue further acquisitions.

The facility, which carries an interest rate of annum of LIBOR plus 5.0% comes in five separate tranches, all of which have a five-year maturity.

The first tranche is for USD200.0 million, and will be used to refinance ADES's existing loans, allowing the company to consolidate all of its borrowings into one facility.

The second tranche is for USD41.5 million, and will go towards refinancing ADES's existing overdraft facilities and supplying working capital to support further contracts.

The final tranche, which is for USD208.6 million, will go towards financing new acquisitions in line with the company's strategy as well as rig refurbishment work on newly acquired assets.

The facility was jointly arranged by the Bank of America Merrill Lynch and the European Bank for Reconstruction and Development, with EFG Hermes Investment Banking acting as ADES's financial advisor.

"At a time when ADES is participating in a number of tenders and screening accretive acquisitions across our core MENA markets, this Facility provides further financial flexibility and expands the range of opportunities that we are able to consider and act upon swiftly. The facility also builds on our longstanding relationships with regional and international financial institutions and ultimately strengthens ADES' leading position in the GCC oilfield services market. We also continue to look at additional local financing options, in particular in the GCC market," said Chief Executive Officer Mohamed Farouk.

Shares in ADES International Holding were down 0.3% at USD14.80 on Friday.