HOUSTON, April 14, 2016 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company") (NYSE: ICD) today announced that it has amended its existing senior secured revolving credit facility and modified covenants to improve the Company's financial flexibility. Material components of the credit facility amendment include relaxing of the leverage and utilization covenants and freezing of advance rates in 2016 for purposes of calculating the borrowing base under the facility.
Pursuant to the amendment, aggregate commitments under the credit facility reduce to $85 million while the credit facility continues to provide for an uncommitted $25 million accordion feature that permits the Company to increase commitments in the future.
As of March 31, 2016, the Company had net debt of approximately $55.3 million and had an estimated borrowing base under the credit facility, pro forma for the amendment and related matters, of $86.1 million.
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.
Byron Dunn, ICD Chief Executive Officer commented, "ICD is committed to generating free cash flow and did so during the first quarter of 2016 while substantially completing conversion of Rig 217 to full 200 Series capability, including a 7500psi mud system with a contingent of three mud pumps. I am very pleased with the proactive and collegial relationship we have with our lending group. Their recognition of ICD's differentiated fleet and business model, and the flexibility afforded by the changes to our credit facility, will allow ICD to respond quickly to improvements in the demand for omni-directional walking pad-optimal drilling rigs in the coming improving energy market."
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.