Weatherford (WFT) Confirms Ability to Meet All Debt Covenants at End of 2016

November 1, 2016 12:32 PM EDT

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As of September 30, 2016 Weatherford International plc (NYSE: WFT) revolving and term loan credit facility covenant calculations are as follows:

  • Specified Senior Leverage Ratio of 1.94x (versus a maximum ratio of 3.0x)
  • Specified Senior Leverage and Letters of Credit Ratio 3.67x (versus a maximum ratio of 4.0x)
  • Specified Asset Coverage Ratio of 12.7x (versus a minimum ratio of 4.0x)

Based on our current fourth quarter 2016 forecast, we expect to meet all covenants at the end of the year. The relative tightness that we are currently experiencing on the Specified Senior Leverage and Letters of Credit Ratio is expected to be alleviated by improving EBITDA and a declining balance of Letters of Credit. Additionally, given our growing order book, increasing tender flow and the recovering levels of customer activity, we expect to continue to meet all applicable revolving and term loan revolving and credit facility covenants through the remainder of 2017.

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