Tidewater Inc., New Orleans, has borrowed $600 million, the maximum amount available under its revolving credit facility, the company announced this week.
The funds will be used for “general corporate purposes and to enhance the company’s liquidity position and financial flexibility,” the company said.
“Like the entire energy services industry, Tidewater continues to face challenges arising from the decline in the level of offshore oil and gas drilling and development activity around the world,” Jeff Platt, Tidewater president and CEO, said in a statement. “Moreover, the uncertainty surrounding the future direction in oil and gas prices has resulted in our clients’ continued reduction in their capital budgets, spending and activity levels.”
Tidewater announced in January that it would suspend its quarterly dividend and common stock repurchase program. The company posted a third-quarter net loss for the period ended Dec. 31, 2015, of $19.5 million, or 42 cents a share, on revenues of $218.2 million.
Platt said that suspension of the dividend and common stock repurchase program along with an operating system realignment were among steps taken to “enhance liquidity, reduce costs and reduce capital expenditures, all to best position the company for an eventual industry recovery.”