Benzinga | Sep 8, 2020 04:34PM EDT

Civeo Corporation Announces Amendment And Eighteen Month Extension To Its Credit Agreement

Civeo Corporation (NYSE:CVEO) announced today completion of an amendment and extension to its credit agreement, including the term loan and all three revolving credit facilities. This extension encompasses all of Civeo's outstanding debt structure. The following are key aspects of the amended credit agreement:

* extends the maturity date of the revolving credit facilities and the term loan by 18 months to May 30, 2023;

* maintains previous covenant levels and amortization payment schedules;

* increases interest rate spreads above base rates by approximately 100 basis points above prior spreads; and

* decreases the total revolving commitment to $167.3 million, a level more consistent with currently expected needs, which will reduce undrawn commitment fees.

"Our bank agreement extension demonstrates the significant strides we have made in reducing leverage and generating positive free cash flow in a very difficult market environment. We would like to thank our lending group for their continued support. The revised agreement affords the Company additional time to pursue our financial objectives of focusing on free cash flow generation and debt reduction while we explore longer term debt capital solutions," stated Bradley J. Dodson, Civeo's President and CEO.

As previously disclosed during the Company's 2019 credit agreement extension, approximately $56 million of revolving commitments were scheduled to mature on November 30, 2020. Civeo agreed to accelerate the maturity of these two commitments to coincide with this amendment. As a result of this amendment and the previously contemplated $56 million reduction, Civeo's revolving commitments now include: (1) a $122.3 million Canadian revolving credit facility (reduced from $183.5 million); (2) a $35 million Australian revolving credit facility (reduced from $60 million); and (3) a $10 million U.S. revolving credit facility (reduced from $20 million). In total, the revolving commitments decreased to $167.3 million from $263.5 million.

Additional information on the terms of the amendment can be found in a separate Current Report on Form 8-K to be filed with the Securities and Exchange Commission today.