Pioneer Energy Services (NYSE: PES) has amended its existing senior secured revolving credit facility and modified certain covenants to enhance the company's financial flexibility. The new agreement sets the borrowing capacity of the facility at $300 million, a reduction of $50 million from the previous facility, and provides for more flexible financial covenants.
Beginning in the fourth quarter of 2015, the maximum total consolidated leverage ratio will increase to 4.50 to 1.00 and reach a maximum of 5.50 to 1.00 as of the end of the second quarter of 2016 through the first quarter of 2017. The ratio will gradually decrease and return to 4.00 to 1.00 by the end of the first quarter of 2018 and thereafter. The senior consolidated leverage ratio and interest coverage ratio remain unchanged at 2.50 to 1.00.
The amended facility maintains the previous facility's maturity date of Sept. 22, 2019. Currently, Pioneer has $110 million outstanding and $17.3 million in committed letters of credit under the senior secured revolving credit facility.