Independence Contract Drilling lifts loan commitments to $155 million

By Susanna Moon

Chicago, Nov. 6 – Independence Contract Drilling, Inc. lifted the aggregate commitments under its credit facility due Nov. 5, 2018 to $155 million from $125 million, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans is Libor plus 450 basis points with a commitment fee of 50 bps.

The company amended its credit agreement on Wednesday with CIT Finance, LLC as the lead arranger, bookrunner and syndication agent. CIT Finance LLC also is administrative agent and collateral agent. Capital One Business Credit Corp. is the documentation agent.

The agreement also provides for an additional uncommitted $25 million accordion.

The facility is secured by substantially all of the company’s assets.

The borrowing base formula allows for borrowings of up to 85% of eligible trade accounts receivable not more than 90 days outstanding, plus up to 75% of the appraised forced liquidation value of the company’s eligible, completed and owned drilling rigs.

Beginning Nov. 5, the 75% advance rate on the company’s eligible completed and owned drilling rigs decreases by 1.25% per quarter.

Independence is an integrated premium land drilling services provider based in Houston.

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