ADES gets $450M loan for further acquisitions

Egypt’s offshore driller ADES has <span class=”ga”>signed a US$450 million syndicated credit facility to support its recently announced plans to pursue further acquisitions.

In addition to funding potential acquisitions, the loan will also be used to refinance the company’s existing debt and to finance anticipated future working capital. The loan comprises three separate tranches, all of which have a 5-year maturity.

ADES in 2017 agreed to buy three operational jack-up rigs located in Saudi Arabia for $83 million from a subsidiary of Nabors, subject to certain conditions including the novation and renewal of the rigs’ existing drilling contracts with a current major client. Upon completion, the transaction will double ADES’ Arabian Gulf fleet and a number of contracted rigs.

Also, ADES earlier this month reportedly bought the Rowan Gorilla IV jack-up from Rowan.

Loan breakdown


As for the loan, a $200 million tranche named Tranche A will be used to refinance ADES’ existing loans, enabling the company to simplify and consolidate its borrowings into one facility, as well as extending their maturity. Tranche B is for $41.5 million will be used to refinance the company’s existing overdraft facilities under which approximately $21 million was drawn as at 31 December 2017.

The remaining funds will be allocated to additional working capital to support further contract wins.

Tranche C of $208.5 million will be used to partially finance new acquisitions with respect to ADES’ acquisition programme in addition to any rig refurbishment work associated with newly acquired assets 

The loan was jointly arranged by the Bank of America Merrill Lynch and the European Bank for Reconstruction and Development, and was signed with participation from 11 multi-lateral, regional and local banks. EFG Hermes Investment Banking acted as the Company’s financial advisor, ADES said

Mohamed Farouk, Chief Executive Officer of ADES International Holding, said: As previously communicated in our recent 2017 results announcement, this Facility, together with the proceeds of ADES’ May 2017 initial public offering on the London Stock Exchange, will allow us to consolidate our borrowings and enhance ADES’ purchasing power.

 “At a time when ADES is participating in a number of tenders and screening accretive acquisitions across our core MENA markets, this Facility provides further financial flexibility and expands the range of opportunities that we are able to consider and act upon swiftly.”


Share this article

Follow Offshore Energy Today

Posted on March 23, 2018 with tags , .


<< Sep 2019 >>
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

Offshore Energy Exhibition and Conference (OEEC)

The three-day event features an exhibition where over 600 companies will showcase their products and services…

read more >

Argentina Oil and Gas Expo 2019

The Argentine Oil and Gas Institute (IAPG) organizes the Argentina Oil & Gas Expo bringing together the most…

read more >

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >

Africa Oil & Power 2019

The Africa Oil & Power conference will bring together an elite class of ministers and senior-level government…

read more >


Looking to fill a job opening?

By advertising your job here, on the homepage of, you'll reach countless professionals in the sector. For more information, click below...


Looking to fill a job opening?

By advertising your job here, on the homepage of, you'll reach countless professionals in the sector. For more information, click below...