Pioneer Drilling amends loan, lowering size, allowing for notes sales

By Sara Rosenberg

New York, Feb. 23 - Pioneer Drilling Co. amended its credit facility on Tuesday, reducing the revolver size to $225 million from $325 million and allowing for the sale of $250 million senior unsecured notes, according to an 8-K filed with the Securities and Exchange Commission.

Proceeds from the notes sale will be used to repay a portion of the amount outstanding under the company's senior secured revolver.

In addition, the amendment terminates the company's obligation to make an annual mandatory prepayment equal to 50% of its excess cash flow if senior leverage exceeds 2.50 to 1.00.

Wells Fargo is the administrative agent on the deal.

The amendment will become effective upon closing on the notes offering.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.