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Superior Drilling Products Completes New Credit Agreement

March 09, 2016, 08:00 AM
Filed Under: Energy Services

Superior Drilling Products, Inc., a provider of drilling products for the oil, natural gas and mining services industries, announced today the completion of a new $3 million credit facility which is comprised of a two year, $2.5 million accounts receivable revolving credit facility and a $0.5 million, asset-based term loan amortized over five years. The Company can subsequently request evaluation by the lender for a prospective inventory loan to be effective as early as six months after closing.

The borrowing availability under the revolver is up to 85% of eligible accounts receivable with customer concentration capped at 60% and has a variable interest rate of prime plus 1% plus a monthly service fee of .48%. The term loan’s interest rate is prime plus 5% plus a monthly service fee of .30% with principal and interest payments due monthly for the 60 month period.

Commenting on the credit facility, Christopher D. Cashion, Chief Financial Officer of Superior Drilling Products, noted, “The completion of this credit facility is a testament to the quality of our customer base as well as the lender’s confidence in our future.  With this flexibility, we have the needed working capital to invest in expanding our inventory of tools to meet expected growth in demand.”

Superior Drilling Products, Inc. is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs, sells and rents drilling tools.

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