Lamprell signs new banking facility

Lamprell, provider of engineering and contracting services to the oil and gas industries, has signed a 181m dollar new secured banking facility with a reduced number of five banks. The agreement includes a $100m and a $60m term loan and a $21m revolving credit facility.Lamprell said the new arrangement "significantly simplifies the company's lending structure and rationalises the covenants to a common basis". The facility will replace the group's existing funded facilities and will sit alongside the continuing bilateral unfunded facilities which are used for the issue of bonds and guarantees. The financial terms for the new facility arrangement were factored into the group's forecasts for 2013 so the board maintains its full-year expectations."This new facility arrangement will provide a solid platform to Lamprell in its efforts to deliver stability and security of funding for the business in the medium term, by enabling the Group to work with a reduced number of five core lenders on the basis of common and simplified financing terms," said Chief Financial Officer, Frank Nelson."This has been achieved as a result of the positive support of our key relationship banks and is welcome at a time when the company is focusing on its core business areas and is looking to grow based on its competitive advantage in the market."RD