TechnipFMC Announces Entry Into a £600 Million European Commercial Paper Program Under the Bank of England’s COVID Corpora...
May 21 2020 - 4:50PM
Business Wire
Regulatory News:
TechnipFMC plc (the “Company”) (NYSE:FTI) (PARIS:FTI)
(ISIN:GB00BDSFG982) announces that, on 21 May 2020, it filed with
the U.S. Securities and Exchange Commission its Current Report on
Form 8-K (“Form 8-K”) announcing that on 19 May 2020, the
Company, pursuant to the confirmation received from the Bank of
England that the Company is an eligible issuer under the U.K.
Government’s COVID Corporate Financing Facility (the
“CCFF”), entered into a dealer agreement (the “Dealer
Agreement”) with Bank of America Merrill Lynch International
DAC (the “Dealer”) and an Issuing and Paying Agency
Agreement (the “Agency Agreement”, and together with the
Dealer Agreement, the “Agreements”) with Bank of America,
National Association, London Branch, relating to the European
commercial paper program being established under the CCFF as a
source of additional liquidity to the Company (the “CCFF
Program”).
In addition, the Company also announced in the Form 8-K that on
19 May 2020 (the “Signing Date”), the Company, as borrower
and guarantor, together with its subsidiary, Technip Eurocash SNC,
a company incorporated under the laws of France as a société en nom
collectif (together with the Company, the “Borrowers”),
entered into a €500 million senior unsecured revolving credit
facility agreement with HSBC France, a company incorporated under
the laws of France as a société anonyme, as Agent, and the lenders
party thereto (the “Facility Agreement”).
£600 Million CCFF
Program
Under the CCFF Program, COVID Corporate Financing Facility
Limited, an entity operated by the Governor and Company of the Bank
of England on behalf of The Lords Commissioners of Her Majesty’s
Treasury, will purchase at a minimum spread over reference rates,
newly issued European commercial paper in the primary market via
dealers and after issuance from eligible counterparties in the
secondary market.
The Agreements provide the terms under which the Company may
issue, and the Dealer will arrange for, the sale of short-term,
unsecured commercial paper notes (the “Notes”). The Notes
contain customary representations, warranties, covenants, defaults,
and indemnification provisions, and will be sold at such discounts
from their face amounts as shall be agreed between the Company and
the Dealer. The Notes will be fully payable at maturity, and the
maturities of the Notes will vary but may not exceed 364 days. The
principal amount of outstanding Notes may not exceed £600 million.
The Notes will be guaranteed by the Company’s subsidiary, FMC
Technologies, Inc., a Delaware corporation, and will rank pari
passu with the Company’s other unsecured and unsubordinated
indebtedness. The Notes are in addition to other borrowings
incurred by the Company in the ordinary course of business as
necessary to finance working capital for general corporate
purposes. The Agency Agreement provides for the terms of issuance
and payment of the Notes.
The Notes have not been and will not be registered under the
Securities Act of 1933, as amended, and may not be offered or sold
absent registration or an applicable exemption from such
registration requirements.
The Company may issue Notes under the CCFF Program to reduce
existing debt or decrease overall borrowing costs.
€500 Million Facility
Agreement
The Facility Agreement provides for the establishment of a
six-month Euro revolving credit facility with total commitments of
€500 million, which may be extended by the Company for two
additional three-month periods.
Borrowings under the Facility Agreement, if and when drawn,
would bear interest at the Euro interbank offered rate for a period
equal in length to the interest period of a given loan (which may
be three or six months), plus an applicable margin. The Facility
Agreement contains usual and customary covenants, representations
and warranties, and events of default for credit facilities of this
type, including financial covenants.
A copy of the Current Report on Form 8-K can be found on the SEC
website (www.sec.gov) and on the TechnipFMC website
(investors.technipfmc.com).
About TechnipFMC
TechnipFMC is a global leader in subsea, onshore/offshore, and
surface projects. With our proprietary technologies and production
systems, integrated expertise, and comprehensive solutions, we are
transforming our clients’ project economics.
We are uniquely positioned to deliver greater efficiency across
project lifecycles from concept to project delivery and beyond.
Through innovative technologies and improved efficiencies, our
offering unlocks new possibilities for our clients in developing
their oil and gas resources.
Each of our more than 37,000 employees is driven by a steady
commitment to clients and a culture of purposeful innovation,
challenging industry conventions, and rethinking how the best
results are achieved.
TechnipFMC utilizes its website www.TechnipFMC.com as a
channel of distribution of material company information. To learn
more about us and how we are enhancing the performance of the
world’s energy industry, go to www.TechnipFMC.com and follow us on
Twitter @TechnipFMC.
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Investor Relations +1 281 260 3665 Matt Seinsheimer
Phillip Lindsay Director Investor Relations (Europe) +44 (0) 20
3429 3929 Phillip Lindsay
Media relations Christophe Bélorgeot Senior Vice
President Corporate Engagement +33 1 47 78 39 92 Christophe
Bélorgeot
Brooke Robertson Public Relations Director +1 281 591 4108
Brooke Robertson
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