TechnipFMC amends revolver, increases debt capacity to $1.75 billion

By William Gullotti

Buffalo, N.Y., April 25 – TechnipFMC entered into a fifth amendment to its multicurrency revolving credit facility with JPMorgan Chase Bank, NA as administrative agent and a new performance letter-of-credit agreement with DNB Bank ASA, New York Branch as administrative agent on April 24, according to an 8-K filing with the Securities and Exchange Commission.

The amended multicurrency revolver was upsized to $1.25 billion and had its maturity extended five years to April 24, 2028.

There is a $250 million sublimit for letters of credit issued under the amended revolver.

Drawdowns will bear interest at SOFR, Sonia or Euribor plus a margin. The applicable margin is dependent on the company’s total leverage ratio. Sonia and Euribor margins will range from 250 basis points to 350 bps, with SOFR margins ranging from 150 bps to 250 bps.

There is also a facility fee ranging from 25 bps to 50 bps, also dependent upon the leverage ratio.

Upon achieving investment-grade ratings by any two of the three agencies, the ranges for the margins and fees will be revised. With the satisfaction of certain other conditions precedent, the collateral securing the revolver and guarantees provided by certain subsidiaries will be automatically released. Certain negative covenants will likewise cease to apply.

In addition to serving as administrative agent for the multicurrency revolver, JPMorgan is also acting as a joint lead arranger and joint bookrunner with BofA Securities Inc. and Citibank, NA.

Societe Generale, Standard Chartered Bank, Sumitomo Mitsui Banking Corp. and Wells Fargo Bank, NA are the co-documentation agents.

The new performance letter-of-credit facility, also scheduled to mature April 24, 2028, totals $500 million. Commitments under the new facility may be increased to $1 billion, subject to certain customary conditions.

The new performance LoC credit agreement permits the company and its subsidiaries to have access to performance letters of credit denominated in a variety of currencies.

Letters of credit issued under the agreement will be subject to a participation fee ranging from 90 bps to 126 bps and a commitment fee ranging from 25 bps to 50 bps. The fees are determined by the company’s total leverage ratio.

As with the amended multicurrency revolver, the ranges for the fees will be revised upon achieving investment-grade ratings by any two of the three agencies. With the satisfaction of certain other conditions precedent, the collateral securing the revolver and guarantees provided by certain subsidiaries will be automatically released. Certain negative covenants will likewise cease to apply.

DNB Markets, Inc., Deutsche Bank AG, New York Branch, Societe Generale and Wells Fargo Bank, NA are the joint lead arrangers and joint bookrunners, with DNB Markets also acting as sole coordinator.

DNB Bank, in addition to acting as administrative agent for the new facility, is also the green adviser.

Based in London, the oil and gas services company was formed from the combination of Houston-based FMC Technologies and Paris-based Technip Eurocash SNC.

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