Superior Energy cuts credit facility to $400 million, amends covenants

By Marisa Wong

Morgantown, W.Va., July 14 – Superior Energy Services, Inc. amended its fourth amended and restated credit agreement with JPMorgan Chase Bank, NA to reduce the size of the facility to $400 million, according to an 8-K filing with the Securities and Exchange Commission.

The company also amended the credit facility to suspend the maximum leverage ratio until the fourth quarter of 2017 and replace it with a senior secured debt to EBITDA ratio during this period and to reduce the EBITDA to interest ratio covenant until the fourth quarter of 2017.

In addition, the amendment modifies the minimum cash balance covenant to require less than a $150 million cash balance when there is less than $75 million of borrowings under the credit facility and modifies the restricted payment covenant to eliminate the company’s ability to pay dividends and make equity repurchases until Sept. 30, 2017.

The company entered into the credit agreement on Feb. 22 and entered into the amendment on July 13.

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

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