Debt Financing
| Long Term Credit Lines and Interest Bearing Debt |
Nominal Amount as of June 30, 2021 |
Total Credit Line | Financial Covenants |
|
Term Loan ("TLB"), due March 2024 Libor + 600 - 700 basis points (linked to total leverage ratio (“TGLR”))* |
USD 873.0 million |
Maintenance covenant: total net leverage ratio not to exceed 4.50x through June 30, 2021, 4.25x through December 31, 2021, 3.25x through December 31, 2022 and 2.75x thereafter**. Minimum liquidity shall not be less than $75 million | |
| Japanese Export Credit Financing, quarterly amortization payments totalling ~$106 million due next two years (from September 2020) are deferred and will be repaid over four quarters starting December 2022 | USD 298.5 million | Maintenance Covenants: Same as for TLB | |
| Convertible bond 5%, due 2024 | USD 10.9 million |
*If rating below B3/B- (stable outlook) from Moody’s or S&P, respectively, TLB margin 7.50% and RCF margin 6.50%.
**Total Net Leverage Ratio is the ratio of consolidated indebtedness (including IFRS lease liabilities) of PGS ASA net of consolidated unrestricted cash and cash equivalents and restricted cash held for debt service in respect of the Export Credit Financing divided by 12 month rolling EBITDA adjusted for non pre-funded MultiClient investments.
Credit Rating
| Rating agency | Date of rating | Rating | Outlook |
| Moody’s | February 17, 2021 | Caa1 | Negative Outlook |
| S&P | February 5, 2021 | CCC+ | Negative Outlook |
For credit rating definitions, please see link for Moody’s.