Parker Drilling Company, PD Holdings Domestic Company s.a.r.l., and Certain of the Company's Subsidiaries Enter into an Amended and Restated Credit Agreement
October 15, 2019 at 05:03 pm EDT
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On October 8, 2019, Parker Drilling Company, PD Holdings Domestic Company s.a.r.l., and certain of the company's subsidiaries, entered into an amended and restated credit agreement (the Amended and Restated Credit Agreement), which amends and restates that certain Credit Agreement, dated as of March 26, 2019, by and among the Company and certain of its subsidiaries as borrowers, the lenders from time to time party thereto, Bank of America, N.A., as administrative agent, and Bank of America, N.A. and Deutsche Bank Securities Inc. as joint lead arrangers and joint bookrunners, and acknowledged and agreed to by certain of the Company's subsidiaries, as guarantors. The Amended and Restated Credit Agreement provides for, among other things: the lenders' continuation of $50.0 million in aggregate commitments; a reduction of potential incremental aggregate commitments from $75.0 million to $50.0 million; the extension of the maturity date from March 26, 2023 to October 8, 2024, subject to restrictions, including the refinancing of the Company's existing term loan facility; a reduction of the interest rate to LIBOR plus a range of 1.75% to 2.25% (based on availability); the reduction of the unused commitment fee from 0.50% to between 0.25% and 0.375% (based on utilization); a revised calculation of the borrowing base; the addition of Parker Drilling Company North America Inc. as a borrower and the inclusion of its collateral in the borrowing base upon the completion of a field examination; the replacement of the $25.0 million liquidity covenant with a minimum fixed charge coverage ratio requirement of 1.0x when excess availability is less than the greater of (A) 20.0% of the lesser of commitments and the borrowing base and (B) $10.0 million; and the ability of the Company to grant a second priority lien on non-working capital assets in the event of a refinancing of its existing term loan facility. Under the Amended and Restated Credit Agreement, the Company has agreed to pay an upfront arrangement fee and commitment fee, as well as an annual administrative agent fee.
Parker Drilling Company provides drilling services and rental tools to the energy industry. The Companyâs business lines include rental tools services and drilling services. Its rental tools services operate through two segments: United States rental tools and International rental tools. Its drilling services operate through two segments: United States (lower 48) drilling and International & Alaska drilling segments. The Company's drilling services business serves operators using parker-owned and customer-owned rig fleets in select United States and international markets, specialized in remote and harsh environment regions. The Company's rental tools services business supplies equipment and well services to operators on land and offshore in the United States and international markets. The Company also provides well construction services such as tubular running services and downhole tool rentals, and well intervention services such as whipstocks, fishing, and related services.
Parker Drilling Company, PD Holdings Domestic Company s.a.r.l., and Certain of the Company's Subsidiaries Enter into an Amended and Restated Credit Agreement