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Rowan amends principal bank facility terms, lifts size to $1.5 billion
By Susanna Moon
Chicago, May 6 – Rowan Cos., Inc. amended its principal bank credit facility, lifting the size to $1.5 billion from $1 billion, according to an 8-K filing with the Securities and Exchange Commission.
The company entered into the credit agreement Tuesday with Wells Fargo Bank, NA as administrative agent.
Citibank, NA, DNB Bank ASA, New York Branch, Royal Bank of Canada, Bank of America, NA, Barclays Bank plc and Bank of Tokyo-Mitsubishi UFJ, Ltd. are the co-syndication agents.
The facility includes an accordion that allows increasing the size to a maximum of $1.75 billion with lender commitments.
The $1.5 billion of lending commitments includes a $150 million sublimit for standby letters of credit and a $50 million sublimit for swingline loans.
Borrowing capacity without the accordion will remain at $1.5 billion until Jan. 23, 2019, when it is reduced to $1.44 billion until final maturity on Jan. 23, 2020.
The company is required to maintain a debt to capitalization ratio of no more than 60%. A number of covenants were modified by amendment to increase threshold amounts, the filing noted.
Provisions of the amended credit agreement limit the ability of the company to create liens that secure debt and to merge or consolidate with another company and, in the event of noncompliance, restrict asset purchases and sales.
Borrowings under the agreement are guaranteed by Rowan Cos. plc, Rowan Cos., Inc. and subsidiaries, Rowan Finanz, Sarl, Atlantic Maritime Services LLC, Rowan 350 Slot Rigs, Inc. and Rowan Finance LLC, and may be guaranteed in the future by other subsidiaries.
Rowan is a contract drilling services provider based in Houston.
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