PARKER DRILLING COMPANY (NYSE:PKD) Files An 8-K Entry into a Material Definitive Agreement

PARKER DRILLING COMPANY (NYSE:PKD) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01Entry Into Material Definitive Agreements.

Story continues below

On February 14, 2018, Parker Drilling Company (the “Company”) entered into the Fifth Amendment (the “Fifth Amendment”), amending the Second Amended and Restated Credit Agreement dated as of January 26, 2015 (as amended by the First Amendment, dated as of June 1, 2015, the Second Amendment, dated as of September 29, 2015, the Third Amendment, dated as of May 27, 2016, the Fourth Amendment, dated as of February 21, 2017, and the Fifth Amendment, the “Credit Agreement”) among the Company, the lenders party thereto from time to time, Bank of America N.A. as administrative agent and letter of credit issuer, and the other parties thereto.

The Fifth Amendment, among other things, modifies the credit facility to an asset-based lending structure, reduces commitments from $100 million to $80 million, eliminates the financial covenants previously in effect, adds a minimum liquidity covenant of at least $30 million (including at least $15 million of availability under the Credit Agreement) and a monthly borrowing base calculation based on eligible rental equipment and eligible domestic accounts receivable, removes the Company’s ability to make certain restricted payments, adds the ability of the Company to designate certain of its subsidiaries as “Designated Borrowers” thereunder, and permits the Company to refinance its existing unsecured senior notes with unsecured or secured debt.

The above description of the material terms and conditions of the Fifth Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Fifth Amendment and the Credit Agreement.


Parker Drilling Company (Parker Drilling) is a provider of contract drilling, and drilling-related services and rental tools. The Company’s business consists of two business lines: drilling services and rental tools services. Its Rental Tools Services business includes its Rental Tools segment, and its Drilling Services business includes its U.S. (Lower 48) Drilling, and International & Alaska Drilling segments. The Company’s U.S. (Lower 48) Drilling segment provides drilling services with its Gulf of Mexico barge drilling rig fleet and through U.S. (Lower 48) based O&M services. Its International & Alaska Drilling segment provides drilling services, with Company-owned rigs, as well as through O&M contracts, and project related services. In its Rental Tools Services business, it provides rental equipment and services to exploration and production (E&P) companies, drilling contractors and service companies on land and offshore in the United States and select international markets.

An ad to help with our costs