Debt Financing

 

Long Term Credit Lines and Interest Bearing Debt 

Nominal Amount as of June 30, 2020

Total Credit Line Financial Covenants

Term Loan ("TLB"), due March 2024 

Libor + 600 - 700 basis points (linked to total leverage ratio (“TGLR”))*

TLB, due March 2021

Libor + 250basis points

USD 520.4 million

 

 

USD 2.0 million

  None, but incurrence test: total net leverage ratio ≤ 2.00x**

Revolving credit facility ("RCF"), due September 2023                                   

Libor + margin of 450-600 bps (linked to TGLR)* + utilization fee

USD 135 million Revolving credit facility ("RCF"), due September 2020               

 Libor + margin of 325-625 bps (linked to TGLR) + utilization fee

USD 215.0 million

 

 

USD 135.0 million

USD 215.0 million

 

 

USD 135.0 million

 

Maintenance covenant: total net leverage ratio ≤2.75x** and minimum liquidity the higher of $75 million or 5% of  net interest-bearing debt

 

Japanese ECF, 12 year with semi-annual installments. 50% fixed/ 50% floating interest rate USD 298.5 million   None, but incurrence test for loan 3&4: Total leverage ratio ≤ 3.00x** and Interest coverage ratio ≥ 2.0x**

*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  July 17, 2020 Caa1 Negative Outlook
Fitch April 27, 2020 CCC  
S&P September 21, 2020 SD  

For credit rating definitions, please see link for Moody’s.