Hunting Regulatory News (HTG)

Hunting PLC

("Hunting" or "the Company" or "the Group")

$150m Asset Based Lending Facility

Hunting PLC (LSE : HTG), the international energy services group, today announces that on 7 February 2022 the Company concluded a refinancing of its core borrowing facilities and has entered into a new $150m Asset Based Lending facility (the "ABL" or the "Refinancing"). The lending group for the ABL comprises Wells Fargo and HSBC.

The ABL facility has a four-year term, maturing on 7 February 2026 and replaces the Company's $160m Revolving Credit Facility which has been cancelled.

The ABL facility contains an accordion feature of up to a further $50m which is accessible subject to further credit approval from the relevant lenders, enabling the Company to increase the total facility quantum to $200m.

The Refinancing delivers a more flexible funding arrangement, leveraging the strength of the Company's balance sheet to unlock bank funding by linking the Company's borrowing capacity to secured asset values rather than earnings. The ABL construct provides a degree of insulation against the historical cyclicality of the oil and gas sector and the sensitivity of a conventional RCF earnings-based covenant regime.

The three main asset classes that will form the "Borrowing Base" of the ABL facility against which bank funding can be advanced are eligible North American trade receivables, inventory and freehold properties. The Borrowing Base may be recalibrated periodically based on the then-prevailing in scope asset values as would be typical for facilities of this nature. The ABL facility will be secured by way of first priority charges over the Borrowing Base assets as well as an all assets debenture from the Company and each of its material subsidiaries.

The ABL facility includes a "Fixed Charge Cover Ratio" ("FCCR") financial covenant that is only assessed when utilisation of the facility exceeds 87.5% of the available facility. The FCCR measure looks back over the trailing twelve-month period to assess whether EBITDA (as defined by the facility agreement) covers the Company's Fixed Charges at a ratio of at least 1:1.

The ABL structure will provide the Group with access to consistently higher levels of committed liquidity than would have been available under the now cancelled RCF, due to the significantly reduced sensitivity to the prevailing earnings environment. It is management's view, therefore, that the primary refinancing objective has been accomplished and this new ABL facility provides a strong foundation to support the strategic growth aspirations of the Company.

EY acted as independent financial advisor to the Company in respect of the Refinancing.

Commenting on the new ABL, Jim Johnson, Chief Executive of Hunting said:

"The new ABL provides Hunting with a significant increase to liquidity and gives the Group 'through the cycle funding' which will be vital as we enter a new phase of growth in our core markets.

"Hunting has adopted strong capital discipline for many years, which has benefited the Group since the onset of COVID-19 and with the new borrowing facility, we can capture new growth opportunities."

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has operations in Canada, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.

The Group reports in US dollars across four segments: Hunting Titan, North America, Europe, Middle East and Africa ("EMEA") and Asia Pacific.

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.