Todco gets $200 million revolver

By Sara Rosenberg

New York, Jan. 5 - Todco closed on a new $200 million four-year secured revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Nordea Bank acted as the lead bank on the deal.

Borrowings under the revolver carry an interest rate of Libor plus 160 basis points and there is a 55 bps commitment fee.

Financial covenants include a maximum ratio of total debt to total capitalization of 0.35 to 1.00, a minimum tangible net worth of $375 million and, in the event availability under the facility is less than $50 million, a minimum fixed-charge coverage ratio of 2.00 to 1.00 for the previous four fiscal quarters.

The revolver, which closed Dec. 29, is secured by most of the company's drilling rigs, receivables and the stock of most of its U.S. subsidiaries.

Todco is a Houston-based provider of contract oil and gas drilling services.

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