Patterson-UTI Energy Inc. (NASDAQ: PTEN) has entered into a $200 million senior unsecured term loan agreement with a group of financial institutions led by Wells Fargo Bank NA. The maturity date of the term loan facility is Sept. 27, 2017, which is the same maturity date as the company's principal credit agreement.
The term loan has been funded, and Patterson-UTI has used the proceeds to repay all $150 million of outstanding revolving borrowings under the company's principal credit agreement. Patterson-UTI will use the remaining funds for general corporate purposes.
The company has also entered into a new letter of credit facility with The Bank of Nova Scotia, pursuant to which the company may from time to time through the end of 2017 request that the bank issue an unspecified amount of letters of credit. Patterson-UTI expects that the $39.8 million in letters of credit outstanding under the company's principal credit agreement will be replaced by letters of credit issued under the new letter of credit facility.
With Patterson-UTI 's repayment of all outstanding revolving borrowings and the replacement of the letters of credit, the company expects to achieve full availability of its $500 million line of credit under its principal credit facility.