Atwood Oceanic unit adds on $350 million to $750 million facility

By Toni Weeks

San Luis Obispo, Calif., July 25 - Atwood Oceanics, Inc. subsidiary Atwood Offshore Worldwide Ltd. entered into the fourth amendment to its credit agreement on July 24 to eliminate scheduled commitment reductions to the $750 million of commitments under the agreement, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The company also negotiated on July 25 a new $350 million tranche to the original tranche, lifting total commitments to $1.1 billion. Before the effective date of the new tranche, the original agreement had an accordion feature that could push borrowings to $1.3 billion.

All borrowings under the credit agreement remain due on May 6 2016.

Borrowings under the new tranche bear interest at Libor plus a margin of 200 basis points to 225 bps based on corporate credit ratings. There is a commitment fee of 50 bps on the unused portion of the commitment.

In connection with the incremental commitment agreement, the company pledged its drilling rig, Atwood Condor, as well as equity interests in the subsidiaries that own, directly or indirectly, this rig as additional collateral under the agreement.

Nordea Bank Finland plc, New York Branch is the administrative agent.

No other terms of the credit agreement were amended, according to the filing. All other terms and conditions of the credit agreement, including the financial and other restrictive covenants, are applicable to the new incremental tranche.

Houston-based Atwood Oceanics is an offshore drilling, exploration and development company.

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