KCA Deutag seeks to amend credit facility, extend term loan B

New York, March 13 – KCA Deutag Alpha Ltd. said it is seeking consents from its credit facility lenders to amend some covenants and to extend its term loan B in connection with an acquisition.

KCA Deutag announced on March 5 that it has agreed to acquire the Omani and Saudi Arabian businesses of Dalma Energy LLC.

To finance the acquisition, the company expects to use $425 million of senior secured bonds plus cash on its balance sheet and class A ordinary shares of KCAD Holdings I Ltd.

The bonds plus possible credit facility borrowings will make up the debt financing.

KCA Deutag’s subsidiary KCA Deutag UK Finance plc also began a solicitation of consents for its $375 million of 7¼% senior secured notes due 2021 and its $535 million of 9 7/8% senior secured notes due 2022.

The company is seeking to amend the indenture to allow for a new debt financing and to extend the deadline for publishing its quarterly report for the period ending June 30, 2018, according to an announcement from the company.

KCA Deutag is an Aberdeen, U.K.-based drilling and engineering contractor for onshore and offshore oil, gas and geothermal markets.

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