Saudi Arabia-based offshore drilling service provider ADES Holding Company has amended its existing syndicated facility to upsize it with an additional $3 billion to support its expansion plans.

The facilities include a $2.7 billion standby term tranche with an 8.5-year maturity and a $300 million revolving credit facility (RCF) with an eight-year maturity.

The additional commitments will be available in both US dollars and Saudi riyals (38.5% in USD and 61.5% in SAR).

Utilisation under the standby term tranche will be subject to the completion of certain conditions and will be secured by the potential assets to be newly acquired along with their associated backlog.

The significantly upsized syndication will provide ADES with the financial flexibility to capitalise on new potential growth opportunities, including acquisitions and organic growth.

The entities include Saudi Awwal Bank, Riyad Bank, Al Rajhi Bank, Arab National Bank, Saudi National Bank, Alinma Bank, Banque Saudi Fransi, Aljazira Bank, Arab Petroleum Investments Corporation (APICORP) and Commercial Bank of Dubai.

The amount to be utilised under the standby term tranche shall be repaid semi-annually, including a bullet repayment of 31.5% at the final maturity date.

“This additional capital will further strengthen our purchasing power, providing us with greater flexibility to consider and act swiftly on value-accretive acquisitions and other growth opportunities, all while maintaining sustainable leverage levels,” said Dr. Mohamed Farouk, CEO of ADES Holding.

(Editing by Seban Scaria seban.scaria@lseg.com)