Civeo Corporation Announces Amendment and Extension to its Credit Agreement
Civeo (NYSE:CVEO), a leading provider of hospitality services in the Canadian oil sands and Australian natural resource regions, has announced an amendment and extension to its credit agreement. Key aspects include:
1. Extension of the maturity date to August 2028
2. Upsizing of total revolving credit facility capacity to $245 million from $200 million
3. Reduction in borrowing costs while maintaining previous covenant levels
This amendment provides Civeo with increased flexibility for capital allocation priorities, including share repurchases, quarterly dividends, and potential growth opportunities. Civeo currently operates 24 lodges and villages in North America and Australia, with approximately 26,000 rooms, and provides services at 22 customer-owned locations with over 18,000 rooms.
Civeo (NYSE:CVEO), un fornitore leader di servizi di ospitalità nelle sabbie bituminose canadesi e nelle regioni di risorse naturali australiane, ha annunciato un emendamento e un'estensione del proprio contratto di credito. Gli aspetti chiave includono:
1. Estensione della data di scadenza fino ad agosto 2028
2. Aumento della capacità totale della linea di credito revolving a 245 milioni di dollari rispetto ai 200 milioni di dollari
3. Riduzione dei costi di prestito mantenendo i livelli di covenant precedenti
Questo emendamento fornisce a Civeo una maggiore flessibilità nelle priorità di allocazione del capitale, comprese le riacquisti di azioni, i dividendi trimestrali e le opportunità di crescita potenziale. Civeo attualmente gestisce 24 lodge e villaggi in Nord America e Australia, con circa 26.000 camere, e fornisce servizi in 22 sedi di clienti con oltre 18.000 camere.
Civeo (NYSE:CVEO), un proveedor líder de servicios de hospitalidad en las arenas petrolíferas canadienses y en las regiones de recursos naturales australianos, ha anunciado una modificación y extensión de su contrato de crédito. Los aspectos clave incluyen:
1. Extensión de la fecha de vencimiento hasta agosto de 2028
2. Aumento de la capacidad total de la línea de crédito revolvente a 245 millones de dólares desde 200 millones de dólares
3. Reducción en los costos de financiamiento manteniendo los niveles de convenios anteriores
Esta modificación proporciona a Civeo una mayor flexibilidad en las prioridades de asignación de capital, incluyendo recompra de acciones, dividendos trimestrales y posibles oportunidades de crecimiento. Civeo opera actualmente 24 lodges y aldeas en América del Norte y Australia, con aproximadamente 26,000 habitaciones, y proporciona servicios en 22 ubicaciones propiedad de clientes con más de 18,000 habitaciones.
시베오(Civeo, NYSE:CVEO)는 캐나다 오일 샌드 및 호주의 천연 자원 지역에서 숙소 서비스를 제공하는 선두 기업으로, 신용 계약의 수정 및 연장을 발표했습니다. 주요 내용은 다음과 같습니다:
1. 만기일을 2028년 8월로 연장
2. 총 회전 신용 한도를 2억 달러에서 2억 4천 5백만 달러로 증가
3. 기존의 계약 조건을 유지하면서 대출 비용 감소
이번 수정 사항은 시베오에게 자본 배분 우선 순위에 대한 유연성을 높여주며, 주식 매입, 분기 배당금, 잠재적인 성장 기회를 포함합니다. 시베오는 현재 북미와 호주에서 24개의 로지 및 마을을 운영하며, 약 26,000개의 객실을 보유하고 있으며, 18,000개 이상의 객실이 있는 22개 고객 소유 시설에서 서비스를 제공합니다.
Civeo (NYSE:CVEO), un fournisseur leader de services d'hospitalité dans les sables bitumineux canadiens et les régions de ressources naturelles australiennes, a annoncé un ajustement et une extension de son contrat de crédit. Les principaux aspects comprennent :
1. Prolongation de la date d'échéance jusqu'en août 2028
2. Augmentation de la capacité totale de la facilité de crédit revolving à 245 millions de dollars contre 200 millions de dollars
3. Réduction des coûts d'emprunt tout en maintenant les niveaux de covenants précédents
Ce changement offre à Civeo une flexibilité accrue pour les priorités d'allocation de capital, y compris les rachats d'actions, les dividendes trimestriels et les opportunités de croissance potentielles. Civeo exploite actuellement 24 lodges et villages en Amérique du Nord et en Australie, avec environ 26 000 chambres, et fournit des services dans 22 emplacements appartenant à des clients avec plus de 18 000 chambres.
Civeo (NYSE:CVEO), ein führender Anbieter von Gastgewerbedienstleistungen in den kanadischen Ölsanden und den Regionen natürlicher Ressourcen Australiens, hat eine Änderung und Verlängerung seines Kreditvertrags bekannt gegeben. Zu den wichtigsten Punkten gehören:
1. Verlängerung des Fälligkeitstermins bis August 2028
2. Erhöhung der Gesamtkapazität der revolvierenden Kreditlinie auf 245 Millionen Dollar von 200 Millionen Dollar
3. Senken der Kreditkosten bei gleichbleibenden Covenant-Niveaus
Diese Änderung bietet Civeo eine erhöhte Flexibilität bei der Kapitalzuweisung, einschließlich Aktienrückkäufen, vierteljährlichen Dividenden und potenziellen Wachstumschancen. Civeo betreibt derzeit 24 Lodges und Dörfer in Nordamerika und Australien mit etwa 26.000 Zimmern und erbringt Dienstleistungen an 22 standorteigentum mit über 18.000 Zimmern.
- Extension of credit agreement maturity to August 2028, providing long-term financial stability
- Increase in revolving credit facility capacity from $200 million to $245 million
- Reduction in borrowing costs, potentially improving profitability
- Maintained covenant levels, indicating lender confidence in the company's financial health
- Increased flexibility for capital allocation, including share repurchases and dividends
- None.
Insights
The amendment to Civeo's credit agreement is a positive development for the company's financial flexibility. The
The maintained covenant levels suggest the company's financial health remains stable. This amendment supports Civeo's capital allocation priorities, including share repurchases and dividends, which could positively impact shareholder value. However, investors should monitor how Civeo utilizes this increased financial flexibility, especially in terms of potential growth opportunities and their impact on the company's long-term performance.
Civeo's improved credit agreement reflects positively on its market position in the hospitality services sector for resource industries. With 26,000 owned rooms and services for 18,000 customer-owned rooms, Civeo has a substantial footprint in its niche market. The company's ability to secure favorable lending terms suggests lender confidence in its business model and future prospects.
The increased financial flexibility could allow Civeo to capitalize on potential growth opportunities in the Canadian oil sands and Australian natural resource regions. However, investors should consider the cyclical nature of these industries and how it might affect Civeo's long-term performance. The company's ability to adapt its services and expand its market share in these regions will be important for sustained growth.
- Extends the maturity date of the credit agreement to August 2028;
-
Upsizes total revolving credit facility capacity to
$245 million $200 million - Reduces borrowing costs and maintains previous max net leverage ratio and max interest coverage covenant levels.
“We are pleased to announce this amendment and extension, which allows Civeo more flexibility to execute on our capital allocation priorities such as our share repurchase program, quarterly dividend and potential growth opportunities. We would like to thank our lending group for their continued support,” stated Bradley J.
Additional information on the terms of the amendment can be found in a separate Current Report on Form 8-K to be filed with the Securities and Exchange Commission today.
About Civeo
Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently owns and operates a total of 24 lodges and villages in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including the statements regarding Civeo’s expectations with respect to future plans, share repurchases and dividends, and liquidity needs, are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in,
View source version on businesswire.com: https://www.businesswire.com/news/home/20240812358065/en/
Regan Nielsen
Civeo Corporation
Vice President, Corporate Development & Investor Relations
713-510-2400
Source: Civeo Corporation
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