LONDON (Alliance News) - ADES International Holding Ltd said Thursday it has secured a USD140 million standby credit facility from Saudi-based Alinma bank.
The oil & gas drilling and production services company said the credit facility will be used to finance its acquisition of three operational offshore jack-up rigs from Nabors Industries Ltd.
The credit facility has a 7 year tenor with a 24 month grace period with a fixed repayment rate of 11.1% payable semi-annually.
This credit facility adds to the company's recently secured USD450 million facility arranged by the Bank of American Merrill Lynch and the European Bank for Reconstruction and Development.
Chief Executive Officer Mohamed Farouk said: "Coupled with the USD450 million facility we secured in March, the new KSA Facility is testimony to the confidence placed in ADES by major regional and international banks.
"It underlines our commitment to putting new debt arrangements in place and enhances our already strong cash position following last year's IPO.
"ADES is participating in multiple tenders and screening acquisitions across Saudi Arabia and the wider GCC region, and this KSA Facility further strengthens our purchasing power, providing us with greater flexibility to consider and act swiftly on value-accretive acquisitions."
ADES shares were untraded Thursday at 15.25 pence each.