Polarcus revised covenants
27 Sep 2013
Polarcus Limited (OSE: PLCS) (“Polarcus” or the “Company”) announces that it has agreed certain amendments to the existing USD 410 million fleet bank facility agreement entered into with DnB NOR Bank ASA and DVB Bank SE, Nordic Branch, Garanti-instituttet for Eksportkreditt (GIEK) and Eksportfinans ASA (the “Fleet Bank Facility”).
The amendments include adjustment of the Debt Service Ratio for 2014, improved flexibility concerning multi-client activities and increased free cash requirement.
Under the revised covenants, Polarcus shall, on a consolidated basis, maintain a Debt Service Ratio as follows:
|Q1 – Q4 2013||>2.0x (Calculated on last twelve (12) months)|
|Q1 – Q2 2014||>2.25x (Calculated on last twelve (12) months)|
|From Q3 2014||>2.5x (Calculated on last twelve (12) months)|
“Debt Service Ratio” is defined as EBITDA divided by total interest and principal payments on external debt, not including repayments made before or at final maturity date that is refinanced by new debt. The Debt Service Ratio is to be calculated quarterly, based on the last 12 months period.
The Multi-Client covenant has been adjusted allowing the Company to deploy up to 20% of its vessel capacity on multi-client activities as long as minimum 50% prefunding of the total multi-client cash investments is maintained on a portfolio basis on last twelve months basis.
The minimum free cash requirement has been increased to USD 35 million.
Rolf Rønningen, CEO Polarcus, +971 4 436 0800 / +971 50 459 6982
Tom Henrik Sundby, CFO Polarcus, +971 4 436 0800 / +971 50 708 6480
Polarcus (OSE: PLCS) is a pure play marine geophysical company with a pioneering environmental agenda, specializing in high-end towed streamer data acquisition from Pole to Pole. Polarcus operates a fleet of high performance 3D seismic vessels incorporating an innovative design and advanced maritime technologies for improved safety and efficiency. Polarcus offers contract seismic surveys and multi-client projects worldwide and employs over 500 professionals. The Company’s principal office is in Dubai, United Arab Emirates. For more information, visit www.polarcus.com
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)