Oceaneering Enters $300 Million Revolver With Wells Fargo, Others
Oceaneering International, Inc. announced that it has entered into a new credit agreement for a $300 million revolving credit facility. The new agreement replaces a prior credit agreement that was set to expire January 22, 2012. The new agreement became effective immediately and will remain in effect for five years.
The banks participating in the new credit agreement are Wells Fargo Bank, DNB Bank ASA, HSBC Bank USA, JPMorgan Chase Bank, Bank of America and Barclays Bank. The amount available under the revolving credit facility can be increased to up to $500 million at any time upon the agreement of Oceaneering and existing or additional lenders.
The new revolving credit facility will be available to refinance advances outstanding under the prior credit facility and for other general corporate purposes. Wells Fargo Securities and DNB Markets acted as joint lead arrangers and joint bookrunners for the facility. Wells Fargo is the administrative agent under the new credit agreement and DNB is the syndication agent. The new credit agreement contains similar financial covenants as the prior credit agreement relative to defined levels of Oceaneering’s debt to total capitalization and interest expense coverage.
Robert P. Mingoia, VP and treasurer, stated, “We are extremely pleased that our international group of banks has shown their confidence in our future business prospects. The new arrangement provides us medium-term capital at attractive rates and, coupled with our anticipated strong cash flow, provides us with continued financial flexibility to fund future growth.”