Union Drilling Announces Signing of $125 Million Revolving Credit Facility

FORT WORTH, Texas, April 28, 2011 /PRNewswire/ -- Union Drilling, Inc. (NASDAQ: UDRL) announced today that it has entered into an Amended and Restated Revolving Credit and Security Agreement dated April 27, 2011 with PNC Bank National Association and other lenders (the Credit Agreement).  

Chris Strong, Union Drilling's President and Chief Executive Officer, stated, "We are pleased to have closed on this expanded facility and with the new lender relationships which further diversify our lending group.  This facility provides us with greater financial flexibility to take advantage of opportunistic rig acquisitions."

The Credit Agreement, which matures in April 2016, provides for a borrowing base of $125 million with an option to increase up to $150 million at any time during the term of the Credit Agreement.  In addition, the Credit Agreement reduces the Libor and base rate margin, depending on facility usage, by 25-75 basis points, reduces the unused commitment fee by 12.5 basis points, and no longer requires minimum fixed charge coverage unless availability is less than the greater of 20% of the borrowing base or $25 million.  The Credit Agreement contains other usual and customary conditions, representations and warranties.  A copy of the Credit Agreement will be attached as an exhibit on Form 8-K filed with the SEC.  

About Union Drilling

Union Drilling, Inc., headquartered in Fort Worth, Texas, provides contract land drilling services and equipment to oil and natural gas producers in the United States.  Union Drilling currently owns and markets 71 rigs and specializes in unconventional drilling techniques.

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SOURCE Union Drilling, Inc.