Wood signs $1.2bn sustainable debt facility

Aberdeen-based global engineering and consulting group Wood plc announced it has signed a new $1.2 billion, five-year committed sustainable revolving credit facility (RCF) with a group of 16 relationship banks.

“This extends the maturity profile of Wood’s debt facilities by replacing the existing $1.75bn RCF that was due to step down to $1.5bn in May 2022 and remain at that level until maturity in May 2023,” said Wood.

The financial covenants and lending margin on the new facility are the same as the existing RCF.

The new facility also includes KPIs linked to growing export revenue related to energy transition and sustainable infrastructure and reductions in scope 1 and 2 carbon emissions.”

Wood said it has now completed its planned refinancing exercise and as a result, its principal facilities now comprise a $600m transition export development guarantee facility maturing in July 2026, a $1.2 billion RCF maturing in October 2026, and $880 million of US private placement loan notes maturing at various dates between 2021-2031, of which only $300 million is due before 2026.

Wood chief financial officer David Kemp said: “This new facility reflects the continued strength of support from our relationship banks and their confidence in Wood and our strategy.

“The group now has a balanced portfolio that maintains Wood’s strong liquidity and financial headroom in line with our conservative approach to debt financing arrangements”.

 

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