KCA Deutag completes its financial restructuring

Following the announcements made on 26 March 2020, 2 May 2020, 31 July 2020 and 11 September 2020, KCA Deutag (KCA Deutag or the Group) is pleased to announce today that it has completed its financial restructuring. As a result of the financial restructuring, the Group has:

reduced the debt outstanding under its principal third party financing arrangements from USD 1.9 billion to USD 505 million – resulting in net leverage of 1.4x (pro forma for the transaction)12;

put in place a robust capital structure with a 5 year runway until the maturity of the reinstated bond debt and a 5 year extension to a USD 60m guarantee facility; and

reduced its annual debt servicing costs by approximately USD 106 million.

Joseph Elkhoury, CEO of KCA Deutag said: “Today’s announcement marks a significant milestone for the Group. By successfully deleveraging the Group’s balance sheet, KCA Deutag has the financial flexibility to support the future development of our business and deliver long-term value to all of our stakeholders: employees, customers, shareholders and the communities where we work. With a strong balance sheet, we look forward to working with the Group’s new shareholders and greatly appreciate their backing of the business and the management team.”