TIDMADES
RNS Number : 7209I
ADES International Holding
23 March 2018
ADES signs a US$450 million syndicated credit facility
(London & Dubai, 23 March 2018) ADES International Holding
Ltd. ("ADES" or the "Company") (LON: ADES), the London-listed
Company providing offshore and onshore oil and gas drilling and
production services in the Middle East and Africa through its
subsidiaries, is pleased to announce that it has signed a US$450
million syndicated credit facility (the "Facility") to provide the
Company with greater flexibility to pursue further acquisitions, in
line with its previously outlined post-IPO growth strategy of
scaling up operations in existing and targeted markets.
In addition to funding potential acquisitions, the Facility will
also be used to refinance the Company's existing debt (which
comprises two facilities maturing in 2020 and 2021) and to finance
anticipated future working capital. The Facility comprises three
separate tranches, all of which have a 5-year maturity. The
Facility will carry an interest rate per annum of LIBOR plus 5%,
broadly in line with the applicable rates on the Company's existing
facilities.
Tranche A (US$200 million)
-- Will be used to refinance ADES' existing loans, enabling the
Company to simplify and consolidate its borrowings into one
facility, as well as extending their maturity
-- Tranche A has a repayment grace period of 18 months following
which 75.25% of the principal amount will then be amortised on a
straight line basis semi-annually, with the remaining 24.75%
repayable on maturity
Tranche B (US$41.5 million)
-- Will be used to refinance the Company's existing overdraft
facilities under which approximately US$21 million was drawn as at
31 December 2017. The remaining funds will be allocated to
additional working capital to support further contract wins
-- Bullet repayment on the maturity date of the facility
Tranche C (US$208.5 million)
-- Will be used to partially finance new acquisitions with
respect to ADES' acquisition programme in addition to any rig
refurbishment work associated with newly acquired assets
-- Includes a US$35 million Islamic Murabaha Tranche which has a
repayment grace period of 18 months following which 67.72% of the
principal amount drawn will then be amortised on a straight line
basis semi-annually, with the remaining 32.28% repayable on
maturity
-- The remaining balance of Tranche C (excluding the Islamic
Murabaha Tranche) has a repayment grace period of 18 months
following which 75.25% of the principal amount drawn will then be
amortised on a straight line basis semi-annually, with the
remaining 24.75% repayable on maturity
The Facility was jointly arranged by the Bank of America Merrill
Lynch and the European Bank for Reconstruction and Development, and
was successfully signed with participation from 11 multi-lateral,
regional and local banks. EFG Hermes Investment Banking acted as
the Company's financial advisor.
Commenting on the Facility agreement, Dr. Mohamed Farouk, Chief
Executive Officer of ADES International Holding, said:
"As previously communicated in our recent 2017 results
announcement, this Facility, together with the proceeds of ADES'
May 2017 initial public offering on the London Stock Exchange, will
allow us to consolidate our borrowings and enhance ADES' purchasing
power.
"At a time when ADES is participating in a number of tenders and
screening accretive acquisitions across our core MENA markets, this
Facility provides further financial flexibility and expands the
range of opportunities that we are able to consider and act upon
swiftly."
The Facility also builds on our longstanding relationships with
regional and international financial institutions and ultimately
strengthens ADES' leading position in the GCC oilfield services
market. We also continue to look at additional local financing
options, in particular in the GCC market"
-Ends-
Enquiries
ADES International
Holding
Hussein Badawy
Investor Relations ir@adesgroup.com
Officer
T: +2 (0)2 2527
7111
Instinctif
+44 (0)20
David Simonson david.simonson@instinctif.com 7457 2020
+44 (0)20
Laura Syrett laura.syrett@instinctif.com 7457 2020
+44 (0)20
George Yeomans george.yeomans@instinctif.com 7457 2020
NOTES TO EDITORS
About ADES International Holding
ADES International Holding extends oil and gas drilling and
production services through its subsidiaries and is a leading
service provider in the Middle East and Africa, offering onshore
contract drilling as well as workover and production services in
MENA. Its over 1,200 employees serve clients including major
national oil companies ("NOCs") such as Saudi Aramco and Sonatrach
as well as joint ventures of NOCs with global majors including BP
and Eni. While maintaining a superior health, safety and
environmental record, the Company currently has a fleet of nine
jack-up offshore drilling rigs, three onshore drilling rigs, a
jack-up barge, and a mobile offshore production unit ("MOPU"),
which includes a floating storage and offloading unit.
investors.adihgroup.com
About Bank of America Merill Lynch
Bank of America Merrill Lynch" is the marketing name for the
global banking and global markets businesses of Bank of America
Corporation. Lending, derivatives, and other commercial banking
activities are performed globally by banking affiliates of Bank of
America Corporation, including Bank of America, N.A., member FDIC.
Securities, strategic advisory, and other investment banking
activities are performed globally by investment banking affiliates
of Bank of America Corporation ("Investment Banking Affiliates"),
including, in the United States, Merrill Lynch, Pierce, Fenner
& Smith Incorporated and Merrill Lynch Professional Clearing
Corp., both of which are registered broker-dealers and Members of
SIPC, and, in other jurisdictions, by locally registered entities.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill
Lynch Professional Clearing Corp. are registered as futures
commission merchants with the CFTC and are members of the NFA.
Investment products offered by Investment Banking Affiliates: Are
Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.
(c)2018 Bank of America Corporation. http://www.bofaml.com
About The European Bank for Reconstruction and Development
(EBRD)
The European Bank for Reconstruction and Development (the
"EBRD") is a multilateral developmental investment bank founded in
1991. The EBRD is owned by 65 countries and two EU institutions and
invests in private enterprises, together with commercial partners.
Headquartered in London, the EBRD provides project financing for
the financial sector and the real economy, using investment as a
tool to build market economies and support development in more than
30 countries from central Europe to central Asia.
http://www.ebrd.com
About EFG Hermes
With a current footprint spanning seven countries in the Middle
East and North Africa, EFG Hermes started in Egypt and has grown
over 30 years of success to become the region's leading investment
bank. Drawing on our proven track-record and a team of more than
870 talented employees, we provide a wide spectrum of financial
services that include investment banking, asset management,
securities brokerage, research and private equity to the entire
region.
In 2016, EFG Hermes announced the launch of EFG Hermes Finance,
a finance platform that includes activities in the non-banking
finance field through EFG Hermes Leasing and Tanmeyah Microfinance
as the firm focuses on product diversification and geographic
expansion into frontier markets.
Combining our strengths and expertise in the region, we offer
our clients best-in-class products and services that are tailored
to help them achieve their investment goals in a rapidly changing
environment. www.efghermes.com
Forward--looking statements
Certain statements contained in this announcement, including any
information as to the Group's strategy, plans or future financial
or operating performance constitute "forward looking statements".
These forward-looking statements can be identified by the use of
forward looking terminology, including the terms "believes",
"estimates", "anticipates", "projects", "expects", "intends",
"aims", "plans", "predicts", "may", "will", "seeks" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They
appear in a number of places throughout this announcement and
include statements regarding the intentions, beliefs or current
expectations of the Directors of the Company concerning, amongst
other things, the Group's results of operations, financial
condition and performance, prospects, growth and strategies and the
industry in which the Group operates.
By their nature, forward looking statements address matters that
involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future.
Forward looking statements are not guarantees of future performance
and the Group's actual results of operations and financial
condition, and the development of the business sector in which the
Group operates, may differ materially from those suggested by the
forward-looking statements contained in this announcement. In
addition, even if the Group's results of operations and financial
condition, and the development of the industry in which the Group
operates, are consistent with the forward-looking statements
contained in this announcement, those results or developments may
not be indicative of results or developments in subsequent
periods.
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGREAXDDAAEPEEF
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March 23, 2018 03:22 ET (07:22 GMT)
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