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Independence Contract Drilling Amends Revolving Credit Facility

April 15, 2016, 07:59 AM
Filed Under: Energy Services

Independence Contract Drilling, Inc. announced that it has amended its existing senior secured revolving credit facility and modified covenants to improve the company's financial flexibility.  Material components of the credit facility amendment include relaxing of the leverage and utilization covenants and freezing of advance rates in 2016 for purposes of calculating the borrowing base under the facility.  

An SEC 10-K filing from February 2016 lists CIT Finance as the lead lender in a credit facility intially dated May of 2013 and amended as recently as October 2015.

Pursuant to the amendment, aggregate commitments under the credit facility reduce to $85 million while the credit facility continues to provide for an uncommitted $25 million accordion feature that permits the Company to increase commitments in the future.

As of March 31, 2016, the company had net debt of approximately $55.3 million and had an estimated borrowing base under the credit facility, pro forma for the amendment and related matters, of $86.1 million.  

Independence Contract Drilling provides land-based contract drilling services for oil and natural gas producers in the United States. The Company constructs, owns and operates a fleet of pad-optimal ShaleDriller® rigs that are specifically engineered and designed to accelerate its clients' production profiles and cash flows from their most technically demanding and economically impactful oil and gas properties.

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