Weatherford gets 364-day revolver, extends some revolving commitments

By Sarah Lizee

Olympia, Wash., Aug. 20 – Weatherford International Ltd. entered into a $317 million 364-day revolving credit facility and amended its $583 million revolving credit facility and $350 million term loan agreement with JPMorgan Chase Bank, NA as administrative agent on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Weatherford International plc is the guarantor.

Under the revolver amendment, lenders representing $674 million, including the 364-day agreement, agreed to extend their revolving commitments.

For the extending lenders, the revolving credit agreement matures on July 13, 2020 in the amount of $357 million and is subject to an earlier maturity of June 12, 2020 if, under some circumstances, there is more than $50 million of Weatherford’s 2020 senior notes issued and outstanding on that date.

For the lenders that have not agreed to extend their revolving commitments, representing $226 million, the revolving credit agreement matures on July 12, 2019.

On Nov. 14, the commitments of the extending lenders under the unsecured senior revolving credit facility will be reduced by $54 million, bringing the commitments under both revolvers to $846 million.

Revolving credit facility borrowings bear interest at Libor plus a margin that ranges from 267.5 basis points to 445 bps, depending on the leverage ratio. The facility fee ranges from 32.5 bps to 75 bps. Interest is currently Libor plus 267.5 bps and the facility fee is 32.5 bps.

The 364-day revolver bears interest at Libor plus 217.5 bps to 395 bps, and the facility fee ranges from 32.5 bps to 75 bps. Interest is currently Libor plus 217.5 bps, and the facility fee is 32.5 bps.

The 364-day revolver matures on Aug. 15, 2019.

The company also said it secured consents to modify the credit agreements to permit the debt and liens to be incurred under the 364-day credit agreement and to make other modifications.

Weatherford is required to repay $12.5 million in principal on the last day of each quarter on the term loan.

The company said it expects outstanding borrowings under the term loan as of Nov. 14 to be about $337.5 million.

Weatherford is a Baar, Switzerland-based oilfield services company.

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