Archer Limited has reached an agreement in principle with its secured lenders and other stakeholders for an overall refinancing solution which will create a holistic and robust financial platform for the Group.

The refinancing solution includes a new senior 1st lien facility of USD 260 million, a new USD 200 million 2nd lien bond, conversion of the outstanding Convertible Bond to equity and issuance of a minimum USD 100 million of new equity. 

The Refinancing represents a contemplated pro-forma net debt of USD 413 million, equaling an opening leverage of 3.7x based on the mid-point of ´23 guided EBITDA. The consolidated net debt package is expected to be less than 20% of the Company’s current revenue backlog. The total financing package have an estimated cash cost of SOFR + 4.3%, pending actual leverage ratio, and total cost, including PIK element on 2nd lien bond, of SOFR + 6.5%. 

Dag Skindlo, the Company’s CEO, comments:
“This comprehensive refinancing for Archer is a balanced solution to a significant balance sheet overhang and leaves the Company well placed to capitalise on the significant opportunities we see ahead, in a much more positive trading environment for oil field services.  

I would like to thank all of our stakeholders for supporting us in recapitalising the Company and together with my colleagues much look forward to focusing on running the business for value in the future.”