Petrofac agrees extension of banking facilities

Petrofac said on Friday that it has entered into an agreement to extend $252m of its banking facilities.

The energy services company and its lenders have agreed a 12-month extension of the revolving credit facility and both bilateral bank facilities to October 2024.

"The extension terms include a phased amortisation matching the projected deleveraging of the balance sheet, a waiver of the 31 December 2022 covenants, and the replacement of leverage and interest cover covenants with minimum EBITDA and liquidity covenants, which are better suited to the company’s near-term outlook as it continues to make progress rebuilding the backlog," it said.

Petrofac said the financing is in line with its strategy to pre-finance expected liquidity requirements for at least the next 12 months.