Amec Foster Wheeler refinances loans with new three-tranche facility

By Marisa Wong

Morgantown, W.Va., March 2 – Amec Foster Wheeler plc announced it completed a refinancing of its main debt facilities by entering into a new facility with a syndicate of 20 banks.

The new facility consists of a £650 million three-year term loan, a £650 million five-year term loan and a £400 million five-year revolving credit facility, according to a 6-K filing with the Securities and Exchange Commission.

The facility replaces the company’s existing revolving credit facility and the Foster Wheeler acquisition facility.

The interest cover covenant of more than 3.0 times remains unchanged, while the net debt to EBITDA covenant was increased to less than 3.75 times for the first two years, stepping down to less than 3.5 times after that.

Under the new facility, no capital repayments are required to be made until 2019.

The syndication process was oversubscribed, and banks were scaled back as a result, the filing noted.

Pricing for the new loans is in line with previous guidance.

Amec Foster Wheeler is a consultancy, engineering and project management company based in London.

© 2015 Prospect News.
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