Civeo amends credit facility, lowers availability, revises pricing

By Tali Rackner

Norfolk, Va., Feb. 21 – Civeo Corp. completed a third amendment to its credit facility to reduce borrowing availability and provide for greater flexibility, among other things, according to a press release.

Specifically, the amendment:

• Reduces revolving loan commitments by a total of $75 million to $275 million as follows: (a) $10 million of the U.S. revolving credit facility to $40 million; (b) $15 million of the Australian revolving credit facility to $85 million; (c) $10 million of the Canadian revolving credit facility tranche A to $90 million and; (d) $40 million of the Canadian revolving credit facility tranche B to $60 million.

As a result, the total borrowing capacity going forward, including the revolving loan commitments and the outstanding term loans, was lowered to $625 million from $700 million;

• Adds an additional level to the total leverage-based grid that that interest rates for the loans range from Libor plus 225 basis points to 550 bps and the undrawn commitment fees range from 51 bps to 124 bps, based on total leverage;

• Sets a maximum leverage ratio of 5.25 times in the first and second quarters of 2017, stepping up to 5.85 times in the third quarter of 2017 through the third quarter of 2018 and then stepping down to 5.5 times in the fourth quarter of 2018 and to 5.25 times thereafter;

• Establishes interest rates for leverage ratios greater than or equal to 5.5 times that are 50 basis points higher than the highest rate prior to the amendment; and

• Extends the limitations on certain restricted payments under the syndicated facility agreement to January 2018, among other revisions.

Civeo is an accommodations business based in Houston.

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