Archer Limited: Archer has successfully amended and extended its debt facilities

Hamilton, Bermuda (March 13, 2020)

Archer has secured a consensual amendment and extension of its debt facilities with all the lenders to the company. The new financing agreements secure a robust financial foundation:

• Main loan facility extended until 1^st October 2023
• A fixed amortization schedule reinstated
• Interest margins unchanged
• No new equity or liquidity required
• Debt reduction of USD 45 million, equal to NOK 3.1 per share, through reduction of subordinated convertible loan in exchange for a lowered conversion strike price
• Pro forma NIBD reduced from 582 million to USD 537 million
• Available liquidity of approx. USD 96 million post refinancing

CEO Dag Skindlo comments:

“Archer is pleased to announce that we have agreed an extension and reduction of the debt with the lenders under our loan facilities. Archer has demonstrated considerable growth in EBITDA and EBIT over the last 2 years, and Archer has reduced the leverage ratio from 16.2x in 2016 to 6.2x at the end 2019. The improved financial results, with a year on year growth in EBITDA and EBIT of 30% and 170% respectively, coupled with robust cash flow generation and a meaningful liquidity buffer, have enabled us to secure these favorable amendments without issuing new equity and keeping interest margins at competitive levels. The agreed reduction in NIBD of 7.8% improves our credit metrics further, and the extensions ensure a solid financial platform to navigate a turbulent and challenging market environment.”

Revolving Credit Facility

Archer has concluded the negotiation with the lenders under the main facility resulting in amendments to, and an extension of, the USD 610.8 million revolving credit facility (the “RCF”) and overdraft facilities.

The amendments to the RCF include:

• An initial decrease in the commitments by USD 31.7 million to a total of USD 579.1 million
• A 3 year extension of the final maturity to 1^st October 2023
• Quarterly amortization of USD 4 million  commencing 31 March 2021
• A cash sweep mechanism of excess liquidity above USD 90 million starting 31 December 2020
• Interest margin unchanged
• Amendments to the financial covenants with sufficient headroom to Archer’s business plan

BNP/Hermes covered term loan

Archer has reached an agreement with BNP on the EUR 21.4 million outstanding BNP/Hermes covered term loan that include:

• An extension of the final maturity until December 2022
• A EUR 10 million instalment on signing of the amendment agreement
• Quarterly instalments of EUR 1.4 million commencing in 2021
• Interest margin unchanged
• Amendments to the financial covenants with sufficient headroom to Archer’s business plan

Subordinated Convertible Loan

Archer has reached an agreement with Seadrill that the principal and accrued interest as per 31 December 2019 is reduced by 75%, and the new outstanding amount will be USD 13 million. At the same time, the conversion price is adjusted to USD 0.4 per share (from USD 2.083 per share). The final maturity is extended until 1 April 2024.

The amendments to the loan agreements are subject to, inter alia, final documentation and customary conditions precedent as well as well as Hermes credit approval of the EUR 21.4 million BNP/Hermes covered loan.

For additional information please contact:

Dag Skindlo, Chief Executive Officer

Mobile: +47 982 26 624, Email: dag.skindlo@archerwell.com

About Archer

Archer is a global oil services company with a heritage in drilling and well services that stretch back over 40 years. Employing more than 5000 people at 40 locations in 17 countries, from drilling services, well integrity & intervention, plug & abandonment to decommissioning, Archer is focused on safely delivering the highest quality services and products to the drilling and well service markets. Visit our company website at www.archerwell.com

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)