Oil States enters $600 million revolver; spin-off Civeo gets $1.43 billion revolver, term loan

By Marisa Wong

Madison, Wis., June 2 - Oil States International, Inc. entered into a $600 million five-year revolving credit facility on May 28, according to an 8-K filing with the Securities and Exchange Commission.

Interest is equal to Libor plus a margin of 150 basis points to 250 bps. The margin is based on a ratio of Oil States' total leverage to EBITDA.

There is a commitment fee, also based on the leverage ratio, ranging from 37.5 bps to 50 bps.

As of May 30, there was $200 million outstanding under the revolving credit facility.

Wells Fargo Securities, LLC is the lead arranger and bookrunner for the Oil States facility; Wells Fargo Bank, NA is the administrative agent, swingline lender and issuing bank; Royal Bank of Canada is the syndication agent; and Compass Bank is the documentation agent.

Also on May 28, Civeo Corp., a spin-off of Oil States, entered into a $650 million five-year revolving credit facility and a $775 million five-year U.S. term loan facility, according to another 8-K filing with the SEC.

The Civeo revolver is allocated as follows: a $450 million senior secured revolving credit facility with Civeo as borrower, a $100 million senior secured revolving credit facility for some of its Canadian subsidiaries and a $100 million senior secured revolving credit facility for one of its Australian subsidiaries.

Borrowings under the facilities bear interest at Libor plus 175 bps to 275 bps, depending on Civeo's ratio of total leverage to EBITDA.

The commitment fee, also based on leverage, is 37.5 bps to 50 bps.

As of May 30, the U.S. term loan was fully drawn, and there were no borrowings outstanding under the revolving facilities.

RBC Capital Markets is the lead arranger and bookrunner for the Civeo facility; Wells Fargo Bank and Bank of Nova Scotia are co-syndication agents; and National Australia Bank Ltd. and Capital One, NA are co-documentation agents. Royal Bank of Canada is the administrative agent, U.S. collateral agent, Canadian administrative agent, Canadian collateral agent and an issuing bank. RBC Europe Ltd. is the Australian administrative agent, Australian collateral agent and an issuing bank.

Oil States is a diversified oilfield services company based in Houston. Civeo, an accommodations business, is also based in Houston.

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