New debt facility in place following completion of refinancing
Amec Foster Wheeler announces today it has completed the refinancing of its main debt facilities by entering into a new facility with a syndicate of 20 banks.
The new facility, which has three tranches - a three-year £650m term loan, a five-year £650m term loan and a five-year £400m revolving credit facility - replaces the company's existing revolving credit facility and the Foster Wheeler acquisition facility.
The interest cover covenant of more than 3.0x remains unchanged, while the net debt to EBITDA covenant is increased to less than 3.75x for the first two years, reducing to less than 3.5x thereafter.
No capital repayments are required to be made until 2019 under the terms of the facility.
The syndication process was oversubscribed and banks were therefore duly scaled back.
The pricing of the facility is in line with previous guidance, and up-front fees were in line for a facility of this type.
I am pleased that we have completed this refinancing in line with the schedule we set in November last year. This gives us substantial headroom and marks another important step towards further strengthening our balance sheet.
Our results for the year ended 31 December 2015 will be announced on Thursday 10 March, 2016.
Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.
With pro-forma 2014 annualised scope revenues of £5.5 billion and over 40,000 people in more than 55 countries, the company operates across the whole of the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.
Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.
This announcement contains statements which constitute “forward-looking statements”. Forward-looking statements include any statements related to the timing and success of contracts, and are generally identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “may,” “continue,” “should” and other similar expressions. Forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Amec Foster Wheeler, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements.
Amec Foster Wheeler does not undertake to update any of the forward-looking statements after this date to conform such statements to actual results, to reflect the occurrence of anticipated results or otherwise.