Pioneer Energy Services amends revolving credit facility

Pioneer Energy Services (NYSE: PES) has amended its existing senior secured revolving credit facility and modified certain covenants.

Under the new agreement, the total consolidated leverage ratio and asset coverage ratio tests are eliminated. The permissible senior consolidated leverage ratio increases from a current level of 2.50 to 1.00 to a maximum of 4.75 to 1.00 as of the end of the fourth quarter of 2016 through the second quarter of 2017 and gradually decreases to 2.50 to 1.00 as of the end of the third quarter of 2018 and thereafter.

The permissible interest coverage ratio drops from a current level of 2.50 to 1.00 to a minimum of 1.25 to 1.00 as of the end of the third quarter of 2016 through the third quarter of 2017 and returns to 1.50 to 1.00 thereafter.

Pricing increased to a rate of LIBOR plus a fixed 475 basis points for the duration of the facility. The aggregate amount of commitments is set at $200 million, a reduction of $100 million from the terms of the previous September 2015 amendment. The future availability of credit will be based on a borrowing base comprised of certain eligible cash, accounts receivables, inventory and equipment. At this time, the values of the Company's eligible assets exceed the $200 million revolver capacity.

The maturity of the facility is reduced by six months to a maturity date of March 31, 2019. Annual capital expenditures are limited to $50 million with no limitation on equity-funded capital expenditures.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...