According to an 8K filed with the SEC, the Royal Bank of Canada served as administrative agent for an amendment and extension to Civeo’s credit agreement, including its term loan and all three revolving credit facilities. This extension encompasses all of Civeo’s outstanding debt structure. The amended credit agreement:
- Extends the maturity date of the revolving credit facilities and the term loan by 18 months to May 30, 2023
- Maintains previous covenant levels and amortization payment schedules
- Increases interest rate spreads above base rates by approximately 100 basis points above prior spreads
- Decreases the total revolving commitment to $167.3 million, a level more consistent with currently expected needs, which will reduce undrawn commitment fees
“Our bank agreement extension demonstrates the significant strides we have made in reducing leverage and generating positive free cash flow in a very difficult market environment. We would like to thank our lending group for their continued support,” Bradley J. Dodson, president and CEO of Civeo, said. “The revised agreement affords the company additional time to pursue our financial objectives of focusing on free cash flow generation and debt reduction while we explore longer term debt capital solutions.”
As previously disclosed during Civeo’s 2019 credit agreement extension, approximately $56 million of revolving commitments were scheduled to mature on Nov. 30, 2020. Civeo agreed to accelerate the maturity of these two commitments to coincide with this amendment. As a result of this amendment and the previously contemplated $56 million reduction, Civeo’s revolving commitments now include: a $122.3 million Canadian revolving credit facility (reduced from $183.5 million), a $35 million Australian revolving credit facility (reduced from $60 million) and a $10 million U.S. revolving credit facility (reduced from $20 million). In total, the revolving commitments decreased to $167.3 million from $263.5 million.
Civeo is a provider of hospitality services.