Union Drilling amends and restates $125 million revolver with PNC

By Jennifer Chiou

New York, April 28 - Union Drilling, Inc. entered into an amended and restated revolving credit and security agreement on Wednesday with PNC Bank, NA, providing for a $125 million five-year term loan, according to an 8-K filing with the Securities and Exchange Commission.

PNC Bank was the lender and agent along with PNC Capital Markets LLC as lead arranger.

The total commitment has a permitted increase to up to $150 million.

The agreement matures on April 27, 2016 and has an initial margin of Libor plus 250 basis points and beginning on June 30, a sliding scale quarterly adjustment of Libor plus 225 bps to 275 bps depending on use. The filing added that for sliding scale quarterly adjustments to the unused line, fees range from 25 bps to 50 bps depending on use.

The agreement will be collateralized by a first-priority perfected lien on the company's assets.

The Fort Worth, Texas company provides contract land drilling services and equipment to oil and gas companies in the United States.

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