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Weatherford International plc (NASDAQ: WFRD) has increased its Credit Facility by $130 million to $680 million, with additional lenders. The Company also plans to redeem all of its 6.50% Senior Notes due 2028, totaling $81,502,600. The CEO highlighted the progress in fortifying the capital structure, reducing debt by $1 billion in less than three years.
Weatherford International plc (NASDAQ: WFRD) ha aumentato il suo Credito Disponibile di 130 milioni di dollari, raggiungendo i 680 milioni, con l'aggiunta di nuovi finanziatori. La società prevede inoltre di rimborsare tutte le sue Note Senior al 6,50% in scadenza nel 2028, per un totale di 81.502.600 dollari. L'Amministratore Delegato ha sottolineato i progressi nel rafforzamento della struttura capitale, riducendo il debito di 1 miliardo di dollari in meno di tre anni.
Weatherford International plc (NASDAQ: WFRD) ha incrementado su Facilidad de Crédito en 130 millones de dólares hasta alcanzar los 680 millones, con la incorporación de nuevos prestamistas. La compañía también planea redimir la totalidad de sus Notas Senior al 6,50% con vencimiento en 2028, que suman 81.502.600 dólares. El CEO destacó el avance en el fortalecimiento de la estructura de capital, reduciendo la deuda en 1 billón de dólares en menos de tres años.
Weatherford International plc (NASDAQ: WFRD)는 추가 대출자들을 통해 신용 한도를 1억 3000만 달러 증가시켜 총 6억 8000만 달러로 확대하였습니다. 이 회사는 또한 2028년에 만기되는 6.50%의 선순위 채권 전액인 8,150만 2,600달러를 상환할 계획입니다. CEO는 자본 구조를 강화하고 3년 미만의 기간에 부채를 10억 달러 줄인 진전을 강조했습니다.
Weatherford International plc (NASDAQ: WFRD) a augmenté sa Facilité de Crédit de 130 millions de dollars pour atteindre 680 millions de dollars, avec l'ajout de nouveaux prêteurs. La société prévoit également de rembourser la totalité de ses Obligations Senior à 6,50% échéant en 2028, pour un total de 81 502 600 dollars. Le PDG a mis en avant les progrès réalisés dans le renforcement de la structure du capital, ayant réduit la dette de 1 milliard de dollars en moins de trois ans.
Weatherford International plc (NASDAQ: WFRD) hat seine Kreditlinie um 130 Millionen Dollar auf 680 Millionen Dollar erhöht, mit zusätzlichen Kreditgebern. Das Unternehmen plant auch, alle seine mit 6,50% verzinsten Senior-Anleihen, die 2028 fällig werden und insgesamt 81.502.600 Dollar betragen, zurückzuzahlen. Der CEO hob die Fortschritte beim Stärken der Kapitalstruktur hervor, mit einer Schuldenreduzierung von 1 Milliarde Dollar in weniger als drei Jahren.
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Insights
Weatherford International's expansion of its credit facility and subsequent redemption of its senior notes due in 2028 is a strategic maneuver aimed at reinforcing the company's balance sheet. Adding new banks increases liquidity and provides more flexibility in operations. It's important to recognize that expanding a credit facility doesn't necessarily mean the company will use all the available credit, but it does indicate a level of confidence from lenders in the company's stability and growth prospects. The redemption of the notes indicates a proactive approach to debt management, potentially reducing future interest expenses and improving the company's debt profile. Retail investors should consider the implications on the company's interest costs and leverage ratios, understanding that while this can signal financial health, it also places importance on how the company plans to utilize the new liquidity to generate growth.
From a debt market perspective, Weatherford's notice to redeem its outstanding senior notes could be a positive for bondholders, as it reflects the company's ability to repay its obligations ahead of schedule. Early redemption often occurs when a company has access to cheaper sources of capital or when it is looking to improve its debt structure. For investors, this move might suggest a reduced risk profile for the company, as it lowers the overall debt burden. However, it is important to scrutinize the terms of redemption, such as if there's a call premium, which could affect the total cost of redeeming these notes. Additionally, the market should keep an eye on how the expanded credit facility and debt reduction align with Weatherford's long-term financial strategy and operational needs.
HOUSTON, April 23, 2024 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ: WFRD) (“Weatherford,” and together with its subsidiaries, the “Company,” “we,” “us” and “our”) today announced it has increased its Credit Facility by $130 million to $680 million in aggregate commitments by adding additional lenders to its facility. The facility is now comprised of a $309 million tranche available for performance letters of credit and a $371 million tranche available for revolving loans.
The Company also announced notice to redeem (the “Redemption”) the remaining $81,502,600 aggregate principal amount outstanding of its 6.50% Senior Notes due 2028 (the “2028 Notes”). Weatherford expects to redeem the 2028 Notes before the end of May.
Girish Saligram, President and Chief Executive Officer of Weatherford, commented, "Today's announcements highlight our continued progress in fortifying our capital structure. Adding new banks to our facility enhances our liquidity and flexibility in managing our balance sheet and reaffirms our strong operational and financial performance. The facility expansion and the complete redemption of the 6.50% Senior Notes due in 2028 marks a significant milestone, culminating in a remarkable $1 billion reduction in debt in less than three years."
About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company operates in approximately 75 countries with a global talent network of approximately 18,800 team members representing more than 110 nationalities and 340 operating locations.
This news release contains forward-looking statements concerning, among other things, the Company’s strategy and financing plans and goals, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. These forward-looking statements include, but are not limited to, statements regarding the Redemption. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements.
These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in Weatherford’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statements speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
FAQ
What is the new amount of Weatherford's Credit Facility after the increase?
Weatherford's Credit Facility has been increased by $130 million to $680 million.
How much is the total outstanding principal amount of Weatherford's 6.50% Senior Notes due 2028?
Weatherford's 6.50% Senior Notes due 2028 have an outstanding principal amount of $81,502,600.
When does Weatherford plan to redeem the 6.50% Senior Notes due 2028?
Weatherford expects to redeem the 6.50% Senior Notes due 2028 before the end of May.
What is the total debt reduction achieved by Weatherford in less than three years?
Weatherford has achieved a remarkable $1 billion reduction in debt in less than three years.
Who is the President and CEO of Weatherford?
Girish Saligram is the President and Chief Executive Officer of Weatherford.
