Helix Energy Solutions Group entered into a new $80 million asset-based revolving credit facility with a syndicated banking group. The ABL facility replaces Helix’s existing credit facility and term loan, which was concurrently repaid in full.
The key features of the new ABL facility include:
- An $80 million revolving credit facility, subject to borrowing base availability
- A five-year term or 91 days prior to the maturity of Helix’s 2026 convertible senior notes
- Separate U.S. and UK tranches of $45 million and $35 million, respectively
- Initial pricing at LIBOR or SONIA plus 150 to 200 basis points or the base rate plus 50 to 100 basis points, with an undrawn fee of 37.5 to 50 basis points
- An additional $70 million accordion, subject to lender approval
“We are pleased to have executed the new ABL facility, which will provide us with access to working capital financing as needed during our post-capital expansion phase,” Erik Staffeldt, executive vice president and CFO of Helix Energy Solutions Group, said. “We expect the facility will provide greater flexibility to manage our daily operations and financial covenant compliance requirements. Our initial borrowing base is approximately $72 million, and we expect it will fluctuate between $30 and $70 million with our seasonal and geographic changes in activity. The ABL facility will initially be used to support our existing letters of credit, and our initial availability, net of letters of credit, is approximately $70 million with no outstanding borrowings. We are pleased to be able to continue our banking relationships with the support of our lenders.”