Oil rig maker Lamprell (LON:LAM), which shot to infamy after a string of profit warnings last year, has soothed fears over its finances with a US$181mln banking facility.
It includes term loans of US$100mln and US$60mln, as well as a US$21mln revolving credit facility with five banks.
Frank Nelson, the company’s chief financial officer, said: “This new facility arrangement will provide a solid platform to Lamprell in its efforts to deliver stability and security of funding for the business in the medium term, by enabling the group to work with a reduced number of five core lenders on the basis of common and simplified financing terms.
“This has been achieved as a result of the positive support of our key relationship banks and is welcome at a time when the company is focusing on its core business areas and is looking to grow based on its competitive advantage in the market.”
The news buoyed Liberum Capital’s number crunchers, who lifted their recommendation from ‘hold’ to ‘buy’ on Monday.
“With risk lowered and the price back at more attractive levels, we upgrade to Buy,” said analyst Andrew Whittock.
The shares rose 4% to 148p.