Petroleum Geo-Services gets new $110 million credit facility

By Sara Rosenberg

New York, March 4 - Petroleum Geo-Services ASA closed on a $110 million two-year secured working capital facility with an interest rate of Libor plus 200 basis points.

Of the total amount, $70 million of the facility can be used for general corporate purposes and the remaining $40 million can be used for the issuance of letters of credit to support bid and performance bonds associated with PGS' day-to-day operations, according to a company news release.

The company will use a portion of the $40 million letter-of-credit availability to release cash collateral securing outstanding letters of credit. This released cash plus cash collateral that was previously released upon the expiration of other letters of credit will be distributed to holders of the Allowed Class 4 Claims as a $22.7 million second distribution of excess cash under the modified first amended plan of reorganization dated Oct. 21, 2003.

Petroleum Geo-Services is an Oslo, Norway, oilfield service company.

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