Wood Group extends, steps down revolving credit facility

Engineering outfit Wood Group on Friday said it had extended its revolving credit facility to May 2023 and would cut it to $1.5bn.

The step down from $1.75bn would take place in May 2022. Wood said the move reflected its lower debt requirements “against a backdrop of considerable financial headroom and liquidity”.

Covenants remain unchanged at 3.5 times earnings before interest, tax, depreciation and amortisation (EBITDA) on a pre-IFRS 16 basis, the company

Wood said it had “considerable levels of financial headroom and liquidity”. At June 30, 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 more than $3bn, including US private placement debt of around $880m with maturity dates weighted towards 2031.