Lamprell makes major step to financial recovery, CEO says
Lamprell, a UAE-based builder of facilities used by the offshore oil & gas and renewable energy industries, has signed a definitive agreement for a new secured, fully-underwritten banking facility with three lending banks.
Lamprell has said that drawdown is expected to take place shortly. The agreement remains subject to certain conditions subsequent which Lamprell anticipates being satisfied in the next few weeks.
The new arrangements will replace the Group’s existing funded facilities with a US$350 million facility, comprising a US$ 100 million term loan, US$ 50 million for general working capital purposes and US$ 200 million of working capital for project financing.
In addition, the lending banks have agreed to arrange a committed US$ 250 million bonding facility which may be used by the Group for project bonding requirements in connection with new contract awards.
John Kennedy, Chairman of Lamprell, commented: “We are pleased to announce the completion of this new refinancing which is a major step in the financial recovery of the Company and sets it on strong footing for future growth. Along with greater financial flexibility, it is expected to result in material savings from reduced interest margins and from lower bonding costs for our projects. We appreciate the support and confidence shown by our banking consortium in working with us to create a strong, financial platform which enables us to deliver our strategy and generate sustainable long-term value.”