Weatherford International increases credit facility limit to a significant $1 billion
Weatherford International Announces Credit Facility Expansion and New Contract Award
Weatherford International, a leading provider of oilfield services, has announced a significant expansion of its credit facility and a new contract award. The company's stock is currently down -1.8% after hours, trading at $64.31.
On Thursday, the company was extended a $280 million credit by its lenders, bringing the total credit facility to $1 billion. This expansion includes an increased accordion feature, which allows for potential future expansion of lender commitments up to $1.15 billion, subject to certain conditions.
The revised facility comprises a $600 million revolver tranche, $400 million for performance letters of credit, an expanded accordion feature, and extends the maturity from 2028 to 2030. As a result of this expansion, Weatherford International's pro forma liquidity as of June 2025 is now $1.5 billion.
One of the strategic initiatives Weatherford International is supporting with its expanded credit facility is a new contract awarded to the company. Weatherford International announces a tubular running services contract with Petrobras, a Brazilian multinational petroleum company. However, the specific financial details of this contract are not provided.
It is important to note that the expansion of Weatherford's business in Russia is not directly related to the credit facility expansion. The news about Weatherford expanding its Russia business was reported by the Financial Times. Despite ongoing sanctions, Weatherford continues to expand its operations in Russia.
The new credit facility aims to enhance Weatherford International's financial flexibility and support long-term strategic initiatives. A portion of the credit facility is allocated to performance letters of credit.
However, it is worth noting that the new contract with Petrobras is not specified as being part of the contracts that could increase lender commitments up to $1.15 billion, subject to certain conditions. Additionally, the new contract with Petrobras is not mentioned as being part of the contracts that have contributed to Weatherford's stock being down -1.8% after hours.
The information about the credit facility expansion and the new contract award with Petrobras was released in a press release. The company is optimistic about the future and the opportunities that lie ahead. With its expanded credit facility and strategic partnerships, Weatherford International is well-positioned to continue its growth and success in the oilfield services industry.
Read also:
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
- Unveiling Danny Curran: UK's Top Inheritance Property Tracker
