Rowan details amended, new revolvers with $1.27 billion total capacity

By Sarah Lizee

Olympia, Wash., May 23 – Rowan Cos. plc disclosed details of its amended revolving credit facility and new credit agreement, providing for a combined initial borrowing capacity of about $1.27 billion, in an 8-K filed with the Securities and Exchange Commission on Wednesday.

The total amount of commitments under the existing credit agreement was reduced to $310,714,285. The letter-of-credit subfacility was reduced to zero.

Under the existing credit agreement, $60 million of the availability matures on Jan. 23, 2019, $150,714,285 matures on Jan. 23, 2020 and $100 million matures on Jan. 23, 2021.

There are currently no outstanding loans under the existing credit agreement.

Wilmington Trust, NA replaces Wells Fargo Bank, NA as administrative agent for the existing facility.

New revolver

The new senior unsecured revolving credit agreement, which has a capacity of $955 million, provides for a $50 million swingline subfacility and a $129 million letter-of-credit subfacility, with the availability to increase the amounts.

Subject to obtaining additional commitments from new or existing lenders, Rowan may elect to increase the maximum amount available under the revolver by up to $250 million.

The revolver matures on May 22, 2023, provided that if Rowan’s 4 7/8% senior notes are not refinanced in full on or prior to Feb. 1, 2022, the maturity date will be Feb. 1, 2022.

Borrowings bear interest at Libor plus 275 basis points to 425 bps, depending on credit ratings.

The commitment fee ranges from 37.5 bps to 70 bps, also depending on ratings.

Borrowings under the revolver may be used for working capital and other general corporate purposes.

The new revolver includes additional guarantees from some Rowan entities and includes some additional restrictions on Rowan and its subsidiaries.

The credit agreement contains some covenants, including restricting debt to total tangible capitalization to not greater than 55% at the end of each fiscal quarter and a minimum liquidity requirement of $300 million.

Wells Fargo Securities, LLLC, Citigroup Global Capital Markets, Inc., DNB Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays Bank plc and MUFG Bank, Ltd. are co-lead arrangers and joint bookrunners.

Citibank, NA, DNB Bank ASA, New York Branch, Bank of America, NA, Barclays and MUFG are co-syndication agents.

Wells Fargo is the administrative agent, an issuing lender and a swingline lender.

Rowan is a contract drilling services provider based in Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.