Aberdeen-based global engineering group Wood plc announced on Friday the extension of its revolving credit facility to May 2023.

“Recognising the company’s lower debt requirement against a backdrop of considerable financial headroom and liquidity, the current $1.75bn facility will step down to $1.5bn in May 2022 and remain at that level until maturity in May 2023,” said Wood in a stock exchange statement.

“The extension has been secured at competitive market rates, reflecting the strong support of our relationship banks.

“Covenants remain unchanged at 3.5x pre-IFRS 16 EBITDA. 

“Wood has considerable levels of financial headroom and liquidity.  

“At 30 June 2020, net debt was $1.22bn and the ratio of net debt excluding leases to adjusted EBITDA was 1.96x.  

“Undrawn facilities were $1.627bn compared to total financing facilities of over $3bn, including US private placement debt of c$880m with maturity dates weighted towards 2031.”

Wood employs more than 50,000 people in more than 60 countries.

Wood chief financial officer David Kemp said: “This extension of our principal debt facility to May 2023 demonstrates the continued strength of support from our relationship banking partners and maintains Wood’s strong liquidity and financial headroom in line with our conservative approach to debt financing arrangements.”