Pioneer Drilling gets $400 million revolver

By Sara Rosenberg

New York, March 3 - Pioneer Drilling Co. closed on a new $400 million five-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission Monday.

Wells Fargo and Fortis Bank acted as the co-lead arrangers on the deal that was completed on Feb. 29, with Wells Fargo the administrative agent.

Pricing on the revolver can range from Libor plus 150 basis points to 250 bps, based on leverage. Initial pricing is set at Libor plus 225 bps.

Proceeds were used to refinance the company's existing credit facility and will be available for the funding of acquisitions, working capital and other general corporate purposes.

Covenants include a maximum consolidated leverage ratio, a minimum interest coverage ratio and, if the leverage ratio is greater than 2.25 to 1.00, a minimum asset coverage ratio.

Pioneer Drilling is a San Antonio-based provider of contract land drilling services to oil and gas exploration and production companies.

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