Drilling Tools bumps up ABL facility, adds $25 million term loan

Chicago, March 18 – Drilling Tools International Corp. amended and extended its asset-based revolving credit, security and guaranty agreement and entered into a new $25 million term loan, according to a press release.

The ABL agreement has been increased to $80 million from $60 million.

Pricing improved to SOFR plus 250 basis points and certain negative financial covenants were removed.

The maturity date was extended to March 2029.

The amendment was signed with PNC Business Credit, a division of PNC Bank, NA.

The company also entered into a new $25 million term loan with PNC.

Proceeds will be used to support the company’s growth strategy.

The term loan is secured by a mix of rental fleet assets and machinery and equipment.

Interest will be at SOFR plus 400 bps.

The term loan will mature in March 2029.

On both facilities, PNC Bank is the sole lender and PNC Business is the administrative agent.

Winston & Strawn served as legal counsel for DTI and Holland & Knight represented PNC Business Credit.

Houston-based Drilling Tools International manufactures and provides a differentiated, rental-focused offering of tools for use in onshore and offshore horizontal and directional drilling operations.

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