ADES Holding secures SAR 11.3B upsized syndicated credit facility

ADES Holding Co. successfully amended its existing syndicated facility, securing an additional $3 billion (SAR 11.3 billion), with the majority of existing lenders participating, along with new local and regional financial institutions.

In a statement to Tadawul, the company said that the upsized credit facility is predominantly intended as a standby facility for the group’s ambitious expansion plans, divided into a $2.7 billion standby term and additional $300 million revolving credit facility (RCF) tranches.

The financial institutions are Saudi Awwal Bank, Riyad Bank, Al Rajhi Bank, Arab National Bank, Saudi National Bank, Alinma Bank, Banque Saudi Fransi, AlJazira Bank, Arab Petroleum Investments Corp. (APICORP) and Commercial Bank of Dubai.

The duration period of the standby term tranche is 8.5 years, with a final maturity in December 2032. Meanwhile, the duration period of the RCF tranche is eight years, with a final maturity in June 2032.

The guarantees offered for the financing are mortgages over offshore rigs and share mortgages/pledges over entities that hold onshore or offshore rigs as applicable. They also include security over the collection accounts and debt service accrual account. In addition, the guarantees include assignments of receivables under client contracts and receivables under insurance contracts in respect of financed rigs, as well as promissory notes.

The standby term facility is aimed at financing the group’s expansion plans. Meanwhile, the RCF will be applied to the general corporate purposes of the company.

There are no related parties to the deal, the company noted.