HOUSTON, Oct. 21, 2015 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company") (NYSE: ICD) today announced that it has amended its existing senior secured revolving credit facility and modified certain covenants to improve the Company's financial flexibility.
The amended credit facility modifies the leverage ratio covenant (Net Debt/Adjusted EBITDA) so that it increases from 3.75 in the first quarter of 2016 to 4.50 during the fourth quarter of 2016. The leverage ratio returns to 3.00 at the end of the second quarter of 2017. The amendments to the credit facility also reduce the minimum rig utilization covenant to 60% in 2016 and 70% in 2017, and provide for the exclusion of certain planned capital expenditures from consideration for purposes of calculating the fixed charge coverage ratio under that covenant.
As of September 30, 2015, the Company had net debt of approximately $55.1 million. As amended, the credit facility provides for aggregate commitments of $125 million. The credit facility maintains its maturity date of November 4, 2018.
Details of the amended agreement can be accessed in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission today.
Chief Executive Officer Byron Dunn commented, "I am very pleased with these amendments and our lending group's responsiveness to our requests. These amendments provide ICD substantial financial and operational flexibility to fund planned operations at their current tempo, even in current market conditions, into 2017."
About Independence Contract Drilling, Inc.
Independence Contract Drilling provides land-based contract drilling services for oil and natural gas producers in the United States. The Company constructs, owns and operates a fleet of pad optimal ShaleDriller® rigs that are specifically engineered and designed to accelerate its clients' production profiles and cash flows from their most technically demanding and economically impactful oil and gas properties. For more information, visit www.icdrilling.com.
SOURCE Independence Contract Drilling, Inc.