Oceaneering (OII) Reveals Revolving Credit Facility of $215M
Oceaneering International, Inc. OII recently announced that the company got into a new $215-million sustainability-linked senior secured revolving credit facility that will mature in April 2026. This new credit facility replaces the existing one, which was supposed to mature on Jan 25, 2023.
The key characteristics of the credit facility include a $215-million four-year senior secured revolving credit facility, with the ability to increase it to $300 million, the availability of a $100-million letter of credit, borrowings subject to certain ratio-related debt covenants guaranteed by Oceaneering and some of its wholly-owned domestic subsidiaries and secured by first-priority liens on some of the guarantors’ assets, pricing at SOFR plus 225 to 325 basis points (bps) or the base rate plus 125 to 225 bps, with an undrawn fee of 30 to 37.5 bps and finally the ability to add sustainability-linked performance objectives in the future, which will result in lower borrowing rates if accomplished.
Oceaneering believes that the new revolving credit facility will give them decent financial flexibility over the coming four years. Along with common corporate purposes, this arrangement gives extra support to the company’s development of new technologies and capabilities.
Founded in 1964, Oceaneering International, Inc. is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. Headquartered in Houston, TX, OII provides specialized products and services for all the phases of the offshore oilfield lifecycle — from exploration to decommissioning — with a focus on deep water. The company generated revenues of $1.83 billion last year.
Oceaneering currently has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at the following companies that presently carry a better Zacks Rank. Murphy USA MUSA, Ranger Oil ROCC and Cenovus Energy CVE each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is valued at around $5.5 billion. The Zacks Consensus Estimate for Murphy USA’s 2022 earnings per share has been revised upward over the past 60 days from $11.35 to $11.42.
Murphy USA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 24.6%. MUSA stock has rallied around 64.1% in a year.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $10.45 per share, which is an increase of 90.7% from the projected year-ago earnings of $5.48.
Ranger Oil beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 27.3%. ROCC stock has increased 196.3% in a year.
The Zacks Consensus Estimate for Cenovus’ 2022 earnings is pegged at $2.43 per share, up 200% from the projected year-ago earnings of 81 cents.
Cenovus Energy’s stock has increased 119.8% in a year. The Zacks Consensus Estimate for CVE’s 2022 earnings has been revised 37.3% upward over th
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