August 12, 2016
The oil industry and its companies have been experiencing many blows for the last couple of years. But more problems could be looming, in the form of $110 billion in debt scheduled to mature over the next five years.
According to a report from Moody’s Investor Service, more than $21 billion of debt from oilfield services and drilling companies will be maturing in 2018; three times the amount of 2017. The report points out that 67 companies have more than $60 billion of bond and term loans, and $45 billion in revolver commitments due to mature by 2021, with more than half of the bond and term debt maturing through 2019.
The report suggests that while some companies might be able to delay refinancing, lower-rated entities, along with huge interest payments and capital expenditure will be problematic.
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