Hunting enters $150 million four-year refinancing ABL facility

By Marisa Wong

Los Angeles, Feb. 7 – Hunting plc said it concluded a refinancing of its core borrowing facilities and has entered into a new $150 million asset-based lending facility.

Wells Fargo and HSBC make up the lending group, according to a Monday press release.

The ABL facility has a four-year term, maturing on Feb. 7, 2026, and replaces the company’s $160 million revolving credit facility, which has been canceled.

The ABL facility contains an accordion feature of up to a further $50 million, enabling the company to increase the total facility to $200 million.

The ABL facility includes a fixed-charge cover ratio financial covenant that is only assessed when utilization exceeds 87.5% of the available facility.

Hunting said the refinancing delivers a more flexible funding arrangement, leveraging the strength of its balance sheet to unlock bank funding by linking its borrowing capacity to secured asset values rather than earnings. The ABL construct provides a degree of insulation against the historical cyclicality of the oil and gas sector and the sensitivity of a conventional RCF earnings-based covenant regime, the company explained.

EY acted as independent financial adviser to the company for the refinancing.

Hunting is an international energy services group based in London.

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