Business
Amendment of existing bank facility agreement
Amendment of existing bank facility agreement.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \nRNS Number : 8068B Gulf Marine Services PLC 15 January 2018 \n\n \nGulf Marine Services PLC\n('Gulf Marine Services', 'GMS', 'the Company' or 'the Group')\n \nAmendment of existing bank facility agreement\n \nGulf Marine Services (LSE: GMS), the leading provider of advanced self-propelled self-elevating support vessels (SESVs) serving the offshore oil, gas and renewable energy sectors, announces the following amendment to its existing bank facility agreement:\n· term extended by two years with final maturity in 2023; and\n· scheduled loan repayments will be reduced by two-thirds in both 2018 and 2019. \nThe financial covenants amendments and certain restrictions on capital expenditure and dividend payments previously announced on 9 August 2017 remain unchanged. A cash sweep mechanism, effective when the leverage ratio exceeds 4 times EBITDA, has now been established from 2018, where 75% of surplus free cashflow (after adjustment for permitted payments and maintaining a minimum cash balance level) will be applied towards repayment of bank debt. \n \n Duncan Anderson, Chief Executive Officer of GMS, said: \n \n\"We are pleased to announce this two-year extension to our bank facility and the significant reduction in our capital repayments over the next two years. We appreciate the strong support our banking partners have shown for our business model. This new agreement will provide the Group with the improved liquidity and the financial flexibility to allow us to benefit from the market recovery.\" \n \n- Ends -\n \nThis announcement contains inside information. \n \nJohn Brown\nCompany Secretary (responsible for arranging the release of this announcement)\nGulf Marine Services PLC\n15 January 2018\n \nEnquiries\nFor further information please contact: \n\n\n\n\n \nGulf Marine Services PLC \nDuncan Anderson \nJohn Brown\nTel: +971 (2) 5028888\nAnne Toomey\nTel: +44 (0) 1296 622736\n\n\n\n\n\n \n \nBrunswick \nPatrick Handley - UK\nWill Medvei - UK\nTel: +44 (0) 20 7404 5959\nJade Mamarbachi - UAE \nTel: +971 (0) 50 600 3829\n \n\n\n\n\n \nNotes to Editors:\nGulf Marine Services PLC, a company listed on the London Stock ...