Weatherford amends LoC for added $400 million, updates covenants

By Marisa Wong

Los Angeles, Sept. 20 – Weatherford International Ltd. and Weatherford International, LLC entered into an amendment on Monday to their existing senior secured letter-of-credit agreement guaranteed by Weatherford International plc to be permitted to incur an additional $400 million of secured debt under an asset-based lending facility or a revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

In addition, the minimum secured liquidity covenant was removed; the minimum aggregate liquidity requirement was increased to $300 million; the minimum aggregate book value of assets requirement was decreased to $1 billion; and the basket for debt repayments and redemptions was increased to $500 million, subject to having aggregate liquidity of at least $400 million.

Some other changes were made to the covenants under the credit agreement to make them more favorable to the borrowers.

The credit agreement is and will continue to be used for the issuance of bid and performance letters of credit, the filing noted. As of June 30, about $160 million of letters of credit were outstanding under the credit agreement.

Deutsche Bank Trust Co. Americas is administrative agent.

Weatherford is a Houston-based energy services company.

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