Patterson-UTI Energy Inc. entered into a $150 million senior unsecured term loan agreement maturing in June 2022. The loan will have an interest rate of the London interbank offered rate plus 1.125%.
Proceeds of the loan will be combined with cash on hand to repay $300 million of borrowings under the drilling services company's 4.97% series A senior notes due October 2020, according to an Aug. 23 news release.
"The terms and conditions of this new loan are consistent with our investment-grade credit rating, and the ultimate result of these transactions will be a reduction of $150 million in total debt outstanding," Patterson-UTI CFO Andy Smith said, adding that the transactions are expected to enhance the company's financial position.
The company will also have no term debt maturities until 2022.
Wells Fargo Bank NA served as administrative agent, co-lead arranger and lender, with U.S. Bank NA serving as syndication agent, co-lead arranger and lender.
