The stock of Noble Corporation (NYSE:NE) closed at $4.23 gaining 1.44% in yesterday’s trading session. It was today when Noble made an announcement disclosing that a number of its owned subsidiaries had received commitments from lenders to enter into a new credit facility. The company exudes confidence that by the end of this year it will has closed on the new credit facility.
If everything goes according to plan, it is hoped that soon the credit facility will manage to deliver a borrowing capacity of $1.5 billion with an expected maturity of January 2023.On top of that, the Company is expected to retain an incremental $300 million in capacity and that is in regards to its current facility.
It goes without saying that the new unsecured revolver will be pulling along with substantial support from the rest of the banking partners. One of the officials working with it outlined that it was indicative of the company’s excellent operational and financial execution.
Senior Vice President and Chief Financial Officer of Noble Corporation, Adam C. Peakes opined, “Under the expected terms, the new credit facility will be guaranteed by certain of Noble’s rig-owning entities. The commitments to the new credit agreement are non-binding, subject to the finalization and execution of definitive agreements and contingent upon the closing of the new facility.”
A number of Noble’s rig-owning entities will be the ones guaranteeing the new credit facility and of course that will be under some well-laid out terms. One thing about the new credit agreement is the fact that the commitments are non-binding. They are in fact subject to the completion and the execution of a series of the definitive agreements and above all contingent upon the closure of the latest credit facility.
The company’s CEO looks back at the tremendous steps forward that they have managed to make from the time they started their operations as an offshore drilling contractor for the oil and gas industry with great pride. At the moment they own they own the most advanced fleets in the offshore drilling industry and they look forward to achieving much more according to the official.
