RPC amends credit facility to reduce availability, replace covenants

By Marisa Wong

Morgantown, W.Va., July 7 – RPC, Inc. amended its credit agreement with Bank of America, NA on June 30 to reduce the amount available under the credit facility, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The amendment reduces the amount available from $125 million to the lesser of (a) $125 million and (b) a specified percentage (ranging from 70% to 80%) of eligible accounts receivable less the amount of outstanding letters of credit.

The amendment also secures payment obligations under the credit facility with a security interest in RPC’s accounts receivable and replaces RPC’s financial covenants related to minimum leverage ratios and debt service coverage ratios with a covenant to maintain a minimum tangible net worth of not less than $700 million.

Atlanta-based RPC provides oilfield services and equipment to independent and major oilfield companies.

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