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Petrofac secures US$300mln of new bank facilities as US$600mln bond maturity date looms

The FTSE 250-oilfield services group said the new facilities will provide additional liquidity and reduce utilisation of its existing revolving credit facility
woman paying man
Petrofac’s US$677mln bond is due to mature in October

Oilfield services provider Petrofac Limited (LON:PFC) has secured US$300mln of new bank facilities as it gears up to repay a US$677mln bond later this year.

That bond is due to mature in October, at which point, the full amount plus interest (at 3.4%) will need to be paid back.

READ: Petrofac sees good revenue visibility as new order intake gains

The FTSE 250 group, which is still under investigation by the UK’s Serious Fraud Office in connection with a probe into Monaco-based Unaoil, said the new facilities will provide additional liquidity and reduce utilisation of its existing revolving credit facility.

“This financing is in line with the company's strategy to pre-fund expected liquidity requirements for at least the next 12 months, including maturity of Petrofac's US$677mln 3.40% bond in October 2018,” according to a short stock exchange announcement on Monday.

At the end of July, Petrofac sold off almost half of its Mexico operations for up to US$274mln; cash which it said would also go towards paying down its debts.

In a separate announcement, Petrofac said it had been awarded a US$370mln contract by the Basra Oil Company for the expansion of the central processing facility at the Majnoon field in Southern Iraq.

Under the 34-month contract, the lump-sum engineering, procurement and construction project scope of work includes two oil processing trains which are able to process two hundred thousand barrels of oil per day.

Shares jumped 3.3% on the back of the news to 641.8p in late-afternoon trading Monday.

--Adds news on contract award and updates share price--

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Petrofac Limited Timeline

February 28 2019

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