Parker Drilling changes facility to ABL, cuts amount to $80 million

By Sarah Lizee

Olympia, Wash., Feb. 15 – Parker Drilling Co. entered into a fifth amendment to its credit facility with Bank of America, NA as administrative agent on Wednesday to reduce commitments to $80 million from $100 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, among other things, modifies the credit facility to an asset-based lending structure, eliminates the financial covenants previously in effect and adds a minimum liquidity covenant of at least $30 million (including at least $15 million of availability under the credit agreement) and a monthly borrowing base calculation based on eligible rental equipment and eligible domestic accounts receivable.

Additionally, the amendment removes the company’s ability to make restricted payments, adds the ability of the company to designate some of its subsidiaries as designated borrowers and permits the company to refinance its existing unsecured senior notes with unsecured or secured debt.

Parker Drilling is a Houston-based provider of drilling services and rental tools to the energy industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.