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Rowan amends revolving credit facility and retire debt of USD98m senior notes and eliminates quarterly dividend.

M2 EQUITYBITES-January 28, 2016-Rowan amends revolving credit facility and retire debt of USD98m senior notes and eliminates quarterly dividend

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Rowan Companies plc (NYSE:RDC) revealed on Wednesday that it amended its revolving credit agreement to extend the maturity date by one year to 23 January 2021, as of 25 January 2016.

The company said that availability under the facility is USD1.5bn till 23 January 2019, reducing to USD1.44bn till 23 January 2020 and to about USD1.29bn till it matures in 2021. It is yet to be drawn.

Additionally, the company retired about USD98m of outstanding senior notes in the fourth quarter of 2015, which would have come due over the next four years and thus eliminated over USD21m of interest over the same time period.

Finally, the quarterly cash dividend of USD0.10 per share on the company's class A ordinary share was eliminated by its board of directors with immediate effect, providing the company with additional liquidity of USD50m annually.

Rowan with a fleet of 31 mobile offshore drilling units composed of 27 jack-up rigs and four ultra-deep water drill-ships, is a provider of contract drilling services worldwide, including the US, Gulf of Mexico, the UK and Norwegian sectors of the North Sea, the Middle East, Southeast Asia and Trinidad.

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Publication:M2 EquityBites (EQB)
Date:Jan 28, 2016
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