Petrofac gets higher-than-expected credit facility

Shares in Petrofac crept higher on Wednesday afternoon after the oilfield services firm signed a new five-year revolving credit facility for more than it had first expected.

The facility, syndicated among its existing relationship banks a smaller number of new banks, was increased from the $1bn initially sought to $1.2bn due to the "significant level of oversubscription," the firm said.

Shares were trading 2.6% higher at 1,639p by 14:30.

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The money, which will be priced at between 150 and 200 basis points above the LIBOR rate when drawn, will be used for "general corporate purposes". This interest rate will be dependent on the level of utilisation though.

"We are very pleased with the commitment shown by our relationship banks which has enabled us to increase the facility beyond our initial expectations," said Petrofac's Chief Financial Officer Tim Weller.

"We expect Petrofac to continue to maintain a strong capital structure and the new facility will provide us with financing flexibility going forward."