Rig builder Lamprell says it had agreed a new $181million (£115million) banking facility as part of its “back-to-basics” strategy to return the firm to profitability by 2014.
The FTSE 250 firm’s £69.3million losses before tax and one-off items in 2012, followed profits of £48.8million in 2011.
The new finance arrangement is comprised of a $160million in term loan and a $21million revolving credit facility. All are scheduled to mature in June 2016.
The new facility will replace the Group’s existing funded facilities and will sit alongside the continuing bilateral unfunded facilities.
Frank Nelson, Chief Financial Officer, Lamprell, said: “This new facility arrangement will provide a solid platform to Lamprell in its efforts to deliver stability and security of funding for the business in the medium term, by enabling the Group to work with a reduced number of five core lenders on the basis of common and simplified financing terms.”
He added: “This has been achieved as a result of the positive support of our key relationship banks and is welcome at a time when the Company is focussing on its core business areas and is looking to grow based on its competitive advantage in the market.”