Daily News: December 19, 2016

JPMorgan Downsizes Gulf Island Facility to $40MM


JPMorgan Chase, as administrative agent, reduced Gulf Island Fabrication’s borrowing base from $80 million to $40 million.

According to a related 8-K filing, JPMorgan and Whitney Bank serve as lenders.

The annual interest rates applicable to amounts outstanding under the amended credit facility continue to remain, at the company’s option, at either a prime rate established by JPMorgan Chase, or a LIBOR rate (defined in the amended credit facility) plus 2.0% per annum. In addition, the commitment fee on the undrawn portion of the facility and the letter of credit fee on undrawn stated amounts under letters of credit issued by the lenders remain at 0.50% per annum and 2.0% per annum, respectively.

The amended credit facility is secured by substantially all of the company’s and the guarantors’ assets other than real estate. The amendment extends the term of the facility from January 2, 2017 to November 29, 2018. It permits the full borrowing base to be used for issuing letters of credit and/or general corporate and working capital purposes. Under the prior facility, only $20 million of the $80 million borrowing base could be used for general corporate and working capital purposes.

Houston-based Gulf Island Fabrication is a manufacturer of specialized structures and marine vessels used in the energy sector.