Helix amends credit facilityCompany News // February 11, 2016
Helix Energy Solutions Group has amended its credit agreement to provide the company with increased financial flexibility through the third quarter of 2017. The amendment includes the following items:
• Increasing the trailing four quarter maximum leverage ratio to 5.5x for the quarter ending March 31, 2016 then decreasing gradually over successive quarters to 3.5x by December 31, 2017.
• Decreasing the trailing four quarter minimum interest coverage ratio to 2.5x for the quarter ending March 31, 2016 then increasing to 3.0x by June 30, 2017.
• Reduction of the credit facility revolver commitment from US$600 million to US$400 million, which will save the company US$1 million annually in commitment fees.
• Adding a cash requirement covenant of US$50 million if our leverage ratio exceeds 3.5x, US$100 million if it exceeds 4.0x and $150 million if it exceeds 4.5x.
Anthony Tripodo, Executive Vice President and Chief Financial Officer of Helix, said: "We are pleased to announce the amendment of our credit facility. Although the company ended 2015 with nearly US$750 million of total liquidity, we believe it is prudent to obtain longer term flexibility with our credit facility given the persistent weak industry environment as well as our remaining capital commitments. We are very appreciative of the support from our lending group."