Superior Energy downsizes to $470.3 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Feb. 22 – Superior Energy Services, Inc. entered into on Monday an amended and restated credit agreement providing for a $470.3 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver replaces the company’s existing facility, comprising a $600 million revolver and $325 million term loan, which was scheduled to mature in February 2017.

JPMorgan Chase Bank, NA, Bank of America Merrill Lynch and Wells Fargo Securities, LLC, acted as joint lead arrangers and joint bookrunners and Bank of America, NA and Wells Fargo Bank, NA as syndication agents. JPMorgan Chase is the administrative agent.

The revolver matures Feb. 7, 2019.

The amended and restated agreement contains similar covenants as the existing agreement, but the maximum leverage ratio was increased and will be calculated on a net debt basis giving effect to domestic cash in excess of $100 million through 2017.

Beginning it 2018, the maximum leverage ratio cannot exceed 4.25 to 1 and will be computed based on the basis of total EBITDA.

Superior Energy also agreed to maintain a $150 million cash balance if its ratio of net debt to EBITDA is 4.6 to 1 or lower and $200 million if the ratio exceeds 4.6 to 1. The revolver will also be reduced by $10 million, subject to a floor of $400 million, for each quarter that the ratio of the total debt to EBITDA is greater than 4.0 to 1.

Based in New Orleans, Superior Energy Services provides oilfield services and equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.