KCA Deutag amends credit facility, extends and increases term loan B

By Wendy Van Sickle

Columbus, Ohio, March 23 – KCA Deutag Alpha Ltd. said it obtained consents from its credit facility lenders to amend some covenants and to extend and increase its term loan B in connection with an acquisition.

Specifically, the term loan B has been extended by five years and has been increased by $56.6 million, according to a company announcement on Friday.

As previously reported, 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 senior secured bonds plus cash on its balance sheet and class A ordinary shares of KCAD Holdings I Ltd. The company priced $400 million of 9 5/8% secured bonds due 2023 on Friday.

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

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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