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ADES Secures $140 million Standby Credit Facility

Source: www.gulfoilandgas.com 5/24/2018, Location: Middle East

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ADES International Holding Ltd., the London-listed Company providing offshore and onshore oil and gas drilling and production services in the Middle East and Africa through its subsidiaries, has secured a SAR 525 million (US$140 million) standby credit facility (the "KSA Facility") from Alinma bank, one of the leading Saudi-based financial institutions.

The KSA Facility will be used to finance the previously announced acquisition of three operational offshore jack-up rigs from Nabors Industries Ltd ("Nabors"), for which the Company signed a Purchase and Sale Agreement ("PSA") in December 2017, in addition to other potential acquisitions of rigs to be operated in the Kingdom of Saudi Arabia.

This KSA Facility adds to the recently secured US$450 million facility arranged by the Bank of America Merrill Lynch and the European Bank for Reconstruction and Development and further enhances the Group's purchasing power.

KSA Facility Details
· 7-year tenor with a 24-month grace period;

· The profit rate is highly competitive and is in line with prevailing market rates in Saudi Arabia; and

· Repayment of the principal amount will commence 24 months from the signing date and will be calculated using the straight-line amortisation method, with a fixed repayment rate of 11.1%, payable semi-annually

Commenting on the KSA Facility agreement, Dr. Mohamed Farouk, Chief Executive Officer of ADES International Holding, said:

"Coupled with the US$450 million facility we secured in March, the new KSA Facility is testimony to the confidence placed in ADES by major regional and international banks.

"It underlines our commitment to putting new debt arrangements in place and enhances our already strong cash position following last year's IPO.

"ADES is participating in multiple tenders and screening acquisitions across Saudi Arabia and the wider GCC region, and this KSA Facility further strengthens our purchasing power, providing us with greater flexibility to consider and act swiftly on value-accretive acquisitions."

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

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