(), the offshore and onshore oil and gas drilling and production services provider, has signed a US$450mln syndicated credit facility.
The Middle East and Africa-focused company said the facility would provide it with greater flexibility to pursue further acquisitions.
The company is also taking the opportunity to refinance its existing debt, which comprises two facilities maturing in 2020 and 2021.
The new credit facility comprises three separate tranches, all of which have a five-year maturity. The facility will carry an interest rate per annum of Libor (London interbank offer rate) plus 5%, which is broadly in line with the applicable rates on the company’s existing facilities.
“As previously communicated in our recent 2017 results announcement, this facility, together with the proceeds of ADES’ May 2017 initial public offering on the , will allow us to consolidate our borrowings and enhance ADES’ purchasing power,” said Dr Mohamed Farouk, the chief executive officer of ADF.
“At a time when ADES is participating in a number of tenders and screening accretive acquisitions across our core MENA [Middle East and North Africa] 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 long-standing relationships with regional and international financial institutions and ultimately strengthens ADES’s leading position in the GCC [Gulf Coast Conference] oilfield services market. We also continue to look at additional local financing options, in particular in the GCC market,” he added.
Shares in ADES were up 0.7% at US$14.95 in early deals.