Annual Report 2011 - PGS

Notes to the financial Statements of PGS ASA
NOTES TO THE FINANCIAL STATEMENTS OF PGS ASA
Bank credit facilities
Under the senior secured credit facility established in June 2007, PGS ASA had a RCF of NOK 2.1 billion ($350.0 million)
maturing in 2012. In January 2011 the maturity of the RCF was extended to 2015. The RCF has a NOK 270.9 million
($45.0 million) sub-limit for issuance of letter of credits, whilst the bonding facility (for issuance of bid and performance bonds)
included in this sub-limit under the previous RCF was in June 2007 replaced by a separate NOK 90.3 million ($15.0 million)
bonding facility (later increased to NOK 180.6 million ($30 million)). PGS ASA may borrow USD, or any other currency freely
available in the London banking market to which the lenders have given prior consent, under the RCF for working capital and for
general corporate purposes. Borrowings under the RCF bear interest at a rate equal to LIBOR plus a margin of 2.25% from
January 25, 2011.
At December 31, 2011 and 2010, PGS ASA had zero outstanding in cash advances, and zero and NOK 21.7 million
($3.6 million), respectively, of standby letters of credit were outstanding under the RCF with an applicable margin of 1.5% per
annum, and NOK 0.6 million ($0.1 million) and NOK 13.8 million ($2.3 million), respectively, of bid and performance bonds were
drawn under the separate committed bonding facility of NOK 180.6 ($30 million), with an applicable margin of 1.4%. PGS ASA
has further smaller NOK 12.0 million ($2 million) and NOK 60.2 million ($10 million) bid and performance bond facilities intended
for regional use.
PGS ASA has also an overdraft facility of NOK 50.0 million as part of the Norwegian cash pooling arrangement. This facility will
continue until cancelled.
Long-term intercompany debt
There is no fixed plan for repayment of long-term intercompany debt.
Covenants
In addition to customary representations and warranties, PGS ASA’s loan and lease agreements include various covenants.
See Note 25 to the consolidated financial statements for additional information.
Letters of credit and guarantees
PGS ASA had aggregate outstanding letters of credit and related types of guarantees (incl. counter guarantees), not reflected
in the accompanying financial statements, of NOK 22.3 million ($3.7 million) and NOK 227.6 million ($38.1 million) as of
December 31, 2011 and 2010, respectively.
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130 PGS Annual Report 2011