Riyadh – Mubasher: Oil and gas drilling services provider ADES Holding Company has amended its existing syndicated facility, obtaining an additional $3 billion multi-tranche dual-currency financing on 14 July 2024.
The majority of existing lenders took part in the debt facility along with new, leading local and regional financial institutions, according to a press release.
Financial Institutions
The financing entities involved in the debt facility included the Arab Petroleum Investments Corporation (APICORP) as well as the following listed banks:
Saudi Awwal Bank (SAB)
Al Rajhi Banking and Investment Corporation (Al Rajhi Bank)
Arab National Bank (ANB)
The Saudi National Bank (SNB)
The Dubai Financial Market (DFM)-listed Commercial Bank of Dubai (CBD)
Details of Upsized Facility
The total upsize amount is divided into the equivalent of a $2.70 billion standby term tranche in addition to a $300 million revolving credit facility (RCF) tranche.
The first tranche holds an 8.5-year tenor with a final maturity in December 2032, including a 12-month grace period, and the RCF tranche is valid for eight years with a final maturity in June 2032.
Aiming to provide ADES Holding with the financial flexibility to capitalise on new potential growth opportunities such as acquisitions and organic growth, the additional commitments will be available as 38.50% in US dollar and 61.50% in Saudi Arabian riyals.
Meanwhile, the amount to be utilised under the standby term tranche will be repaid on a semiannual basis and includes a bullet repayment of 31.5% at the final maturity date.
CEO of ADES Holding, Mohamed Farouk, said: “This additional capital will further strengthen our purchasing power, providing us with greater flexibility to consider and act swiftly on value-accretive acquisitions and other growth opportunities, all while maintaining sustainable leverage levels.”
Farouk added: “We remain committed to delivering long-term sustainable value to our stakeholders while continuing to expand our global footprint and leadership in the oil and gas drilling industry.”
From his part, Hussein Badawy, Group CFO at ADES Holding, commented through his official LinkedIn page by saying: “This milestone marks a significant turning point for our company, setting the stage for unprecedented growth and success ahead.”
Badawy concluded: “With this substantial support in place, we are poised to reach new heights, expand our horizons, and seize opportunities that will shape our future.”
Earlier in July this year, ADES Holding secured a long-term contract extension for the Admarine 657 jackup rig in Saudi Arabia, with the total backlog from the extension estimated to exceed SAR 1.31 billion.
Meanwhile, the company generated net profits worth SAR 200.84 million in the first quarter (Q1) of 2024 as well as SAR 1.53 billion worth of revenues.
