Lenders back Noble Corporation with new credit facility pledge
- Business & Finance
Offshore driller Noble Corporation has received commitments from lenders to enter into a new credit facility, which is expected to close by the end of 2017.
Noble informed on Wednesday that the new credit facility is expected to provide borrowing capacity of $1.5 billion with an expected maturity of January 2023.
Additionally, the company would retain an incremental $300 million in capacity under its current credit facility, or total borrowing capacity of $1.8 billion until January 2020.
Adam C. Peakes, Senior Vice President and Chief Financial Officer of Noble Corporation, stated: “This new unsecured revolver comes with strong support from our banking partners and is indicative of Noble’s excellent operational and financial execution, and strong contract coverage through the challenging offshore environment. In addition to extending important financial flexibility for the company, this new facility fortifies Noble’s excellent industry standing and positions us well for the industry recovery.”
Under the expected terms, the new credit facility will be guaranteed by certain of Noble’s rig-owning entities. The commitments to the new credit agreement are non-binding, subject to the finalization and execution of definitive agreements and contingent upon the closing of the new facility.
Also, the company amended its existing revolving credit facility in order to facilitate the movement of participating lenders to the new unsecured facility. When fully effective, the amendment will result in the lenders under the new credit facility having no commitments under the existing credit agreement. The amendment is contingent upon the closing of the new credit facility.
In related news, Paragon Offshore recently sued Noble in connection with the August 2014 spin-off by Noble of Paragon Offshore.