When ADES International (ADES) published its 2017 results in March, the Egypt-focused oilfield services outfit said it was “putting in place the necessary debt arrangements” for expansion. Since then, the company has leveraged at a greater clip than investors may have expected.
Last week, the jack-up rig specialist signed a SAR525m (£105m) credit facility with Saudi bank Alinma, ostensibly to finance a previously-announced deal to buy three operational offshore jack-up rigs from Nabors, and other potential rigs in the Saudi Arabia.
This adds to the proceeds raised at last year’s IPO and a new $450m (£339m) three-tranche facility with Bank of America. The latter will be used for working capital, and to refinance a balance sheet which had $137m cash and cash equivalents, and $212m of borrowings at the end of 2017.
