Lamprell Plc, the oil-rig maker that reported a loss last year because of project delays, rose to the highest in three months after banks agreed to waive its end-of-year loan covenants.
The company, based in Douglas, Isle of Man, climbed 14 percent to 108 pence a share, the highest price since Oct. 2. The stock has fallen 58 percent in the past year, giving Lamprell a market value of 281 million pounds ($458 million), according to data compiled by Bloomberg.
“Discussions have been successful and culminated in a waiver of the financial covenants under the debt facilities, which were due to be tested on 31 December 2012,” Lamprell said in a statement today. A “wider financing” of the business is expected in the first half of 2013, according to the statement.
Lamprell obtained $305 million of bank facilities in May 2011 to support its acquisition of Maritime Industrial Services Co. Ltd. Inc, data compiled by Bloomberg show. Bank of America Corp. and HSBC Holdings Plc arranged the debt.
The company also received waivers on its loans in June 2012, which Lamprell said were necessary because of losses.
The company was today’s best performer in the FTSE All Share Index, a gauge of 604 companies in the FTSE 350 and the FTSE SmallCap indexes.