Weatherford Enters into $370 Million Amended and Restated Credit Facility

HOUSTON, Oct. 18, 2022 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced that on October 17, 2022 certain of its wholly-owned subsidiaries entered into a credit agreement, which amended and restated the Company’s existing secured letter of credit agreement, dated December 13, 2019, as amended (the “Credit Facility”).

Total aggregate commitments under the Credit Facility are $370 million, of which $45 million is available for revolving loans. The amount available for revolving loans can be increased by up to an additional $100 million as the Company meets certain leverage ratios and subject to lenders’ consent. The Credit Facility will allow the Company to transfer certain cash collateralized letters of credit to the Credit Facility, resulting in lower aggregate cash collateral requirements. The Credit Facility also provides the Company the flexibility, upon satisfaction of certain conditions, to request incremental increases in the aggregate commitments under the Credit Facility to not more than $600 million. The maturity date under the Credit Facility is October 17, 2026, subject to certain conditions.

Girish Saligram, President and Chief Executive Officer, commented, “We are pleased to complete this Credit Facility with our banking partners, a transaction which underscores the significant progress we have made to strengthen our operating profile supported by the continued growth of our differentiated portfolio. While we do not expect to draw upon the revolving loan capacity, the Facility allows us greater flexibility to improve our overall capital structure, and drive growth and scale into our business.”

About Weatherford

Weatherford is a leading global energy services company. Operating in approximately 75 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 17,000 team members and approximately 350 operating locations, including manufacturing, research and development, service, and training facilities.

Contact:

Mohammed Topiwala
Weatherford Investor Relations
+1 713-836-7777
investor.relations@weatherford.com

For Media:

Kelley Hughes
Weatherford Global Communications
+1 713-836-4193
media@weatherford.com

Forward-Looking Statements

This news release contains forward-looking statements concerning, among other things, the Company's expectations regarding business outlook, expectations regarding future financial results, and expectations regarding future indebtedness and liquidity, and are also generally identified by the words "believe," "expect," "anticipate," "may," "should," "could," "will," "would," "will be," "will continue," "resulting in," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including: the price and price volatility of oil and natural gas; various effects from the Russia Ukraine conflict including, but not limited to, extended business interruptions, sanctions imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues, as we may experience a higher rate of cybersecurity attacks, intrusions or incidents in the current environment of remote connectivity; demand for oil and gas and fluctuations in commodity prices; general global economic repercussions related to U.S. and global inflationary pressures; the macroeconomic outlook for the oil and gas industry; operational challenges relating the COVID-19 pandemic and efforts to mitigate the spread of the COVID-19 virus and COVID-19 variants, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; our ability to generate cash flow from operations to fund our operations; and the realization of additional cost savings and operational efficiencies.

These risks and uncertainties are more fully described in Weatherford's reports and registration statements filed with the SEC, including the risk factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company's forward-looking statements. Any forward-looking statements speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

Siena Lending Group LLC Closes $50 Million Credit Facility for MD Helicopters, LLC. 

Siena Lending Group LLC ("Siena") today announced the completion of a $50 million asset-based revolving line of credit to MD Helicopters, LLC (“MDH”), a manufacturer of high-performance rotorcraft solutions that support operators flying military, commercial, law enforcement, utility, and VIP mission profiles. The proceeds from the facility will be leveraged to partially repay a debtor-in-possession credit facility and for future working capital needs.

Originally founded in 1932 by Howard Hughes and formerly known as Hughes Helicopter, MD was acquired by McDonnell Douglas in 1984, and subsequently by Boeing in 1997 through the merger of McDonnell Douglas and Boeing. Today, MDH is owned by an investment consortium led by MBIA Insurance Corp., Bardin Hill Investment Partners, and MB Global Partners, and led by aerospace industry veteran, Brad Pedersen, who serves as Chief Executive Officer. The MD family of rotorcraft is world renowned for its value, versatility, and performance. Commercial offerings include the MD 500E, MD 530F, MD 520N, MD 600N, and twin-engine MD 902 Explorer.

Pedersen said, “As we execute on our business objectives, this capital will ensure we can remain laser-focused on improving customer support worldwide, deepening supplier relationships, and implementing an aggressive aircraft sales plan. We are pleased to partner with Siena Lending Group, an innovative financing specialist, that recognized MDH’s strong future potential under new ownership and a reinvigorated management team.”

Scott Elliotto, Senior Managing Director at Siena said, “MDH has a strong brand recognition backed by a storied history.  We are excited to partner with the new ownership and executives to support their next phase of growth. Siena worked diligently to understand the true asset values and to meet the expectations of the management team and ownership. We collaborated with Seabury, leveraging off their deep industry knowledge and experience which was instrumental to the success of this financing.  This transaction continues to demonstrate Siena’s creativity and scope of our lending capabilities.

Oliver Althoff, Managing Director of Seabury Securities said, “We are grateful to have been able to arrange this important growth capital facility by Siena for our client MDH. Siena proved to be a practical and efficient lending partner by executing on terms that were consistent with their initial financing proposal.”

Seabury Securities LLC (“Seabury”) served as the investment banker and advisor to MDH. Seabury Securities is the industry’s leading practice delivering global investment banking and restructuring capabilities focused on Aviation, Aerospace & Defense.

About Siena Lending Group:

Siena Lending Group is a leading asset-focused lender providing financing solutions from $10 to $100 million across the United States and Canada. We operate across most industry sectors and provide senior secured solutions to privately held middle-market companies and publicly traded industry leaders.  Siena has also earned a reputation as a trusted financing partner to private equity firms and other financial sponsors. Since 2012, Siena has consistently found creative ways to provide borrowers with maximum flexibility and liquidity. With deep lending experience and expertise in complex situations, clients know Siena brings the patience and perspective to help them work through challenges and achieve their long-term visions.

Siena Healthcare Finance, a specialized division of Siena, is dedicated exclusively to providing financing within the healthcare sector. Siena is a portfolio company of Franklin BSP Lending Corporation, an affiliate of Benefit Street Partners L.L.C. ("BSP"). BSP, a leading credit-focused alternative asset management firm, is a wholly-owned subsidiary of Franklin Resources, Inc.

About MD Helicopters:

MD Helicopters, LLC (MDH) manufactures high-performance rotorcraft solutions that support operators flying military, commercial, law enforcement, utility, and VIP mission profiles. With thousands of aircraft in service worldwide, MDH has been designing and building aircraft known for their safety, versatility, responsiveness, speed, and reliability since 1947. Our commitment to product sustainment and customer success allows MDH to deliver aircraft unmatched in their performance and reliability. MD Helicopters, LLC is owned by an investment consortium comprised of MBIA Insurance, Bardin Hill Investment Partners LP, and MB Global Partners. To learn more about MD Helicopters, visit us at mdhelicopters.com, or follow us on Facebook, Twitter, Instagram, and LinkedIn.