Amec Foster Wheeler refinances debt facilities
Company has entered into new agreement with a syndicate of 20 banks
Amec Foster Wheeler has completed the refinancing of its main debt facilities by entering into a new facility with a syndicate of 20 banks.
The new facility, which has three tranches - a three-year £650m term loan, a five-year £650m term loan and a five-year £400m revolving credit facility - replaces the company's existing revolving credit facility and the Foster Wheeler acquisition facility.
The interest cover covenant of more than 3.0x remains unchanged, while the net debt to EBITDA covenant is increased to less than 3.75x for the first two years, reducing to less than 3.5x thereafter.
No capital repayments are required to be made until 2019 under the terms of the facility.
The syndication process was oversubscribed and banks were therefore duly scaled back.
The pricing of the facility is in line with previous guidance, and up-front fees were in line for a facility of this type.
Ian McHoul, CFO and Interim CEO of Amec Foster Wheeler said: "I am pleased that we have completed this refinancing in line with the schedule we set in November last year. This gives us substantial headroom and marks another important step towards further strengthening our balance sheet."