Superior Energy unit amends to use $100 million for cash collateralization

By Sarah Lizee

Olympia, Wash., Aug. 6 – Superior Energy Services, Inc. unit SESI, LLC amended its credit agreement with JPMorgan Chase Bank, NA as administrative agent on Wednesday to, among other things, permit the use of up to $100 million to cash collateralize third-party letters of credit, surety, judgment, appeal or performance bonds or similar obligations.

SESI also agreed to deposit $25 million in an account under the lenders’ control to further secure its obligations under the revolver, according to an 8-K filing with the Securities and Exchange Commission.

The company intends to reduce the amount of letters of credit issued under the revolver to bring availability to at least $37.5 million.

The fourth amendment also prohibits SESI from requesting any loans under the revolver and imposes more restrictive investment, debt, junior debt repayment and restricted payment covenants on SESI.

Based in Houston, Superior Energy provides oilfield services and equipment.

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