Civeo Corporation Announces Completion of Replacement and Refinancing of its Credit Agreement
September 09, 2021 at 02:00 am IST
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Civeo Corporation announced the completion of a replacement and refinancing of its credit agreement. The new syndicated facility agreement, which consists of a Canadian term loan and three revolving credit facilities, encompasses all of Civeo’s outstanding debt structure. In the leverage neutral transaction, the Canadian term loan was reduced to CAD 100 million (approximately USD 80 million), compared to an outstanding balance of CAD 216 million (approximately USD 175 million) as of June 30, 2021. This reduction was funded via a draw on the Canadian revolving credit facility in an equal and offsetting amount. The syndicated facility agreement has a maturity date of September 8, 2025. In addition, among other things, the new syndicated facility agreement: Increases the total revolving commitment to USD 200 million; Changes the maximum leverage ratio to a maximum total net leverage ratio, and adjusts the level of the ratio from 3.50x as of present to 3.25x in the fourth quarter of 2021 and first quarter of 2022 and 3.00x in the second quarter of 2022 and thereafter; Requires term loan amortization payments of CAD 10 million per quarter; and Reduces interest rates for leverage ratios less than 2.0x.
Civeo Corporation is engaged in providing hospitality services. The Companyâs segments include Canada and Australia. The Company offers hospitality services for its guests in the natural resources industry, including lodging, catering and food service, housekeeping and maintenance at accommodation facilities. It provides services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics. It also manages development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management and site construction, along with providing hospitality services once the facility is constructed. It owns and operates 24 lodges and villages with over 26,000 rooms. In Canada, it also offers a fleet of mobile assets which serve shorter term projects, such as pipeline construction.