Offshore construction specialist Lamprell has secured a $45 million revolving trade loan facility to be used for the working capital requirements of the two IMI newbuild jackup rigs which are currently under construction at the Lamprell's Hamriyah yard.
The loan deal was signed with First Abu Dhabi Bank and Emirates Development Bank.
The drawdown of the loan is conditional on, amongst other things, Lamprell successfully completing a 19.99% equity raise. Lamprell expects to undertake the equity raise in Q4 2021.
As part of the terms of the loan, there is a non-committed option for a further USD 45 million accordion facility which is expected to be available in Q1 2022.
Christopher McDonald, Chief Executive Officer said: "We are delighted to have signed this new initial working capital facility for the two IMI rigs and are proud of the support from our key relationship banks in the current, volatile macro environment. This demonstrates the high level of support and close relationships that we maintain with the regional financial institutions."
"Lamprell has been successful in transforming its business over the past few years, making a timely diversification into renewables and digital ventures, and we are confident the new funding will strengthen our balance sheet and assist us in accessing the growth potential in both our addressable markets of renewables and oil and gas."