Patterson UTI Energy Inc. (NASDAQ: PTEN) entered a $200 million senior unsecured term loan agreement, the company said March 18.
Lenders were a group of financial institutions led by Wells Fargo Bank NA.
The term loan, and Patterson’s credit agreement, mature Sept. 27, 2017, the company said.
The company used the loan to repay $150 million of outstanding revolving credit facility borrowings. The remainder of the loan will support funds for general corporate purposes.
Also, Patterson said it entered a new letter of credit facility with the Bank of Nova Scotia. Patterson can request that the bank issues an unspecified amount of letters of credit through year-end 2017. There is $39.8 million in outstanding letters of credit under the principal credit agreement, and it will be replaced by the new facility’s letters of credit.
The $500 million line of credit under the principal facility will be obtained after all repayments are made and the letters of credit are replaced, the company said.
CEO Andy Hendricks said that the company is well positioned in the current market environment.
Houston-based Patterson-UTI Energy Inc.’s subsidiaries provide operate drilling rigs in North America.
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