Rowan enters restated $1 billion revolving credit facility due 2019

By Marisa Wong

Madison, Wis., Jan. 28 - Rowan Cos., Inc. amended its principal bank credit facility to increase its borrowing capacity to $1 billion from $750 million, according to an 8-K filing with the Securities and Exchange Commission.

Rowan and parent company Rowan Cos., plc entered into the amended and restated credit agreement on Jan. 23 with Wells Fargo Bank, NA as administrative agent, issuing lender and swingline lender and Citibank, NA, DNB Bank ASA, New York Branch, Royal Bank of Canada, Bank of America, NA, Barclays Bank plc and Goldman Sachs Bank USA as co-syndication agents.

The amended credit agreement also provides for an accordion feature that increases the facility to a maximum of $1.25 billion.

The $1 billion of lending commitments under the amended facility includes a $150 million sublimit for standby letters of credit and a $50 million sublimit for swingline loans.

The facility matures on Jan. 23, 2019.

Interest is equal to Libor plus 112.5 basis points to 200 bps, depending on the company's debt rating. The margin is currently 150 bps.

The credit agreement contains some covenants, including a financial covenant limiting the total indebtedness of the parent and its subsidiaries on a consolidated basis.

The company intends to use the revolver to finance working capital requirements and for other general corporate purposes.

Rowan is a contract drilling services provider based in Houston.

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