Norway's Archer gets banks to ease lending covenants

OSLO, June 28 Fri Jun 28, 2013 2:58am EDT

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OSLO, June 28 (Reuters) - Norwegian oil services firm Archer agreed with its lending banks to modify its banking covenants and received a $100 million guarantee from Seadrill to support its existing bank facilities, it said on Friday.

Archer, part of shipping tycoon John Fredriksen's empire, said the agreement increases its net interest bearing debt to earnings before interest, taxes, depreciation and amortization ratio.

"Following these amendments, Archer expects to be compliant with all covenants under its loan agreement going forward," it said. (Reporting by Balazs Koranyi, editing by Gwladys Fouche)

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