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    Vallianz completes debt restructuring

    Company News // March 14, 2017

    Vallianz Holdings Limited says it has entered into a framework agreement with lenders to refinance some of the group’s existing borrowings. The sum in qustion is US$163.2 million. The agreement sets out the terms of the intended debt restructuring exercise to be undertaken by the group.

    Pursuant to the agreement, the profile of the borrowings have been restructured to a repayment term of approximately 8.2 years from an average of approximately 5.8 years and the maturity of the borrowings have been extended to December 2022. In addition, the group will grant the lenders a shared security package over the shares of certain subsidiaries of the company and certain fixed assets.

    Completion of the restructuring will result in a deferment of the repayment of the principal amount of borrowings owing from the group, relieving the group’s cashflow by US$103.5 million over the next two years. This will enhance the group’s short to medium term liquidity position and cashflow.

    Ling Yong Wah, CEO of Vallianz, said: "The group appreciates the support given by the lenders, especially during this difficult period facing the offshore oil and gas industry. The successful completion of the debt restructuring exercise will better position the group to withstand the market slowdown and move forward on a stronger financial footing.”

    Rawabi Holding Company Limited, a controlling shareholder of Vallianz, expressed its gratitude to the lenders. Sheikh Abdulaziz AlTurki, Group Chairman of Rawabi, said: “The lenders’ consent to the debt structuring exercise reflects their confidence in the group’s ability to weather the current difficult market conditions. I believe Vallianz’s excellent service quality and its proven operational capabilities in supporting customers’ oilfield activities will enable it to remain competitive and sustain a leading position in its main market in the Middle East.”

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