Independence Contract Drilling reduces revolver, amends covenants

By Tali Rackner

Norfolk, Va., April 14 – Independence Contract Drilling, Inc. amended its existing senior secured revolving credit facility and modified covenants to improve financial flexibility, according to a Thursday press release.

Under the amendment, aggregate commitments under the credit facility were reduced to $85 million. The uncommitted $25 million accordion feature remains.

Material components of the amendment also include relaxing the leverage and utilization covenants and freezing advance rates in 2016 for purposes of calculating the borrowing base under the facility.

As of March 31 Independence Contract had net debt of about $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 is an integrated land drilling services provider based in Houston.

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