Lamprell taps banks for $45 million loan to build two jack-ups

UAE-based offshore contractor Lamprell has signed a $45 million revolving trade loan facility with two banks to cover the costs for the building of two IMI jack-up rigs.

Lamprell secured the funding for the continuation of the construction of these two rigs earlier this month.

The company confirmed on Thursday that it had signed the previously announced $45 million revolving trade loan facility with First Abu Dhabi Bank and Emirates Development Bank. This initial facility will assist with the working capital requirements of the two IMI newbuild jack-up rigs, according to the firm. The rigs are currently under construction at the group’s Hamriyah yard.

Christopher McDonald, Chief Executive Officer, commented:“We are delighted to have signed this new initial working capital facility for the two IMI rigs and are proud of the support from our key relationship banks in the current, volatile macro environment. This demonstrates the high level of support and close relationships that we maintain with the regional financial institutions.”

The drawdown of the initial facility will be conditional on, amongst other things, the group successfully completing a 19.99 per cent equity raise, which it expects to complete in the fourth quarter of 2021. There is a non-committed option for a further $45 million accordion funding arrangement as part of the terms of the initial facility. This is expected to be available in the first quarter of 2022.

“Lamprell has been successful in transforming its business over the past few years, making a timely diversification into renewables and digital ventures, and we are confident the new funding will strengthen our balance sheet and assist us in accessing the growth potential in both our addressable markets of renewables and oil and gas,” added McDonald.

A few days ago, Lamprell was awarded a rig conversion contract by BW Energy to turn a jack-up rig into an offshore production facility.