SAN ANTONIO, Nov. 8, 2017
/PRNewswire/ -- Pioneer Energy Services Corp. (NYSE: PES) today
announced that it has closed on the previously announced new
$175 million senior secured term loan
(the "Term Loan") and a new $75
million senior secured revolving asset-based lending
facility (the "ABL Facility"). The proceeds from the financings
were used to fully repay and retire the company's prior
$150 million revolving credit
facility which had an outstanding balance of $101.7 million.
The Term Loan is set to mature in November 2022, or earlier, subject to certain
circumstances, incurs interest at a rate of LIBOR plus 775 basis
points and includes an asset coverage ratio covenant of 1.5 to 1.0.
The ABL Facility is set to expire in November 2022, or earlier, subject to certain
circumstances, and incurs interest on any outstanding amounts at a
rate of LIBOR plus an applicable margin of 175 basis points to 225
basis points. Based on the company's receivables and
inventory at September 30, 2017, the
ABL Facility provides immediate access to approximately
$47 million of the $75 million available, which is net of
$11.8 million of letters of credit
required for insurance collateral.
"This Term Loan combined with the ABL Facility will provide
greater financial flexibility and increased liquidity that will
allow us to grow as further improvements in the energy markets
drive demand for new drilling rigs and production services
equipment," said Wm. Stacy Locke,
Pioneer's President and Chief Executive Officer. "Looking forward,
we plan to maintain capital discipline, and remain committed to a
strong balance sheet," Mr. Locke said.
Additional details regarding the Term Loan and the ABL Facility
can be found in the Current Report on Form 8-K that we filed with
the U.S. Securities and Exchange Commission on November 8,
2017.
About Pioneer
Pioneer Energy Services provides well, wireline, and coiled tubing
services to producers in the U.S. Gulf Coast, offshore Gulf of Mexico, Mid-Continent and Rocky
Mountain regions through its Production Services Segment. Pioneer
also provides contract land drilling services to oil and gas
operators in Texas, the
Mid-Continent and Appalachian regions and internationally in
Colombia through its Drilling
Services Segment.
Cautionary Statement Regarding Forward-Looking Statements,
Non-GAAP Financial Measures and Reconciliations
Statements we make in this news release that express a belief,
expectation or intention, as well as those that are not historical
fact, are forward-looking statements that are subject to risks,
uncertainties and assumptions. Our actual results, performance or
achievements, or industry results could differ materially from
those we express in the following discussion as a result of a
variety of factors, including general economic and business
conditions and industry trends, levels and volatility of oil and
gas prices, the continued demand for drilling services or
production services in the geographic areas where we operate,
decisions about exploration and development projects to be made by
oil and gas exploration and production companies, the highly
competitive nature of our business, technological advancements and
trends in our industry and improvements in our competitors'
equipment, the loss of one or more of our major clients or a
decrease in their demand for our services, future compliance with
covenants under debt agreements, including our senior secured
revolving asset-based credit facility, our term loan, and our
senior notes, as well as any other debt agreements we may enter
into in the future, operating hazards inherent in our operations,
the supply of marketable drilling rigs, well servicing rigs, coiled
tubing and wireline units within the industry, the continued
availability of drilling rig, well servicing rig, coiled tubing and
wireline unit components, the continued availability of qualified
personnel, the success or failure of our acquisition strategy,
including our ability to finance acquisitions, manage growth and
effectively integrate acquisitions, the political, economic,
regulatory and other uncertainties encountered by our operations,
and changes in, or our failure or inability to comply with,
governmental regulations, including those relating to the
environment. We have discussed many of these factors in more detail
in our Annual Report on Form 10-K for the year ended December 31, 2016, including under the headings
"Special Note Regarding Forward-Looking Statements" in the
Introductory Note to Part I and "Risk Factors" in Item 1A.
These factors are not necessarily all the important factors that
could affect us. Other unpredictable or unknown factors could also
have material adverse effects on actual results of matters that are
the subject of our forward-looking statements. All forward-looking
statements speak only as of the date on which they are made and we
undertake no obligation to publicly update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise. We advise our shareholders that they
should (1) recognize that important factors not referred to
above could affect the accuracy of our forward-looking statements
and (2) use caution and common sense when considering our
forward-looking statements.
Contacts:
|
Daniel Petro,
CFA
Treasurer and
Director of Investor Relations
Pioneer Energy
Services Corp.
(210)
828-7689
|
|
|
|
Lisa Elliott /
lelliott@dennardlascar.com
Anne Pearson /
apearson@dennardlascar.com
Dennard-Lascar
Associates / (713) 529-6600
|
View original
content:http://www.prnewswire.com/news-releases/pioneer-energy-announces-the-completion-of-a-new-175-million-term-loan-and-75-million-asset-based-lending-facility-300552361.html
SOURCE Pioneer Energy Services Corp.