Weatherford Increases Credit Facility and Redeems Senior Notes, Reducing Debt by $1 Billion

Weatherford boosts credit facility by $130M, redeems $81.5M in senior notes, marking $1B debt reduction in 3 years, strengthening its financial position.

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Bijay Laxmi
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Weatherford Increases Credit Facility and Redeems Senior Notes, Reducing Debt by $1 Billion

Weatherford Increases Credit Facility and Redeems Senior Notes, Reducing Debt by $1 Billion

Weatherford International plc (NASDAQ: WFRD) announced on Monday that it has increased its Credit Facility by $130 million to $680 million in aggregate commitments by adding new lenders to the facility. The expanded facility now comprises a $309 million tranche available for performance letters of credit and a $371 million tranche available for revolving loans.

In addition to the Credit Facility expansion, Weatherford also revealed that it will redeem the remaining $81,502,600 aggregate principal amount outstanding of its 6.50% Senior Notes due 2028 before the end of May. This redemption, combined with the company's previous debt reduction efforts, marks a significant milestone of $1 billion in total debt reduction achieved in less than three years.

Girish Saligram, Weatherford's President and CEO, emphasized the importance of these financial moves, stating, "These announcements highlight our continued progress in fortifying our capital structure, enhancing liquidity and flexibility, and reaffirming our strong operational and financial performance."

Why this matters: Weatherford's successful debt reduction and credit facility expansion demonstrate the company's improving financial health and position it for future growth opportunities in the energy industry. The moves also signal increased confidence from lenders in Weatherford's business strategy and performance.

The redemption of the remaining 6.50% Senior Notes due 2028 is expected to be completed by the end of May, leaving Weatherford with only its $1.6 billion long-term notes due 2030 outstanding. The company's proactive approach to managing its debt obligations and strengthening its balance sheet has been well-received by investors and industry analysts, as evidenced by the addition of new lenders to its expanded Credit Facility.

Key Takeaways

  • Weatherford increases credit facility by $130M to $680M, adding new lenders.
  • Weatherford to redeem remaining $81.5M of 6.50% Senior Notes due 2028.
  • Debt reduction efforts total $1B in less than 3 years, improving financial health.
  • Expanded credit facility and debt reduction signal confidence from lenders.
  • Weatherford left with only $1.6B long-term notes due 2030 outstanding.