HOUSTON, Sept. 28, 2012 /PRNewswire/ -- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today announced that the Company has entered into a $600 million, five-year credit agreement with a group of financial institutions led by Wells Fargo Bank, N.A. The credit agreement replaces the Company's 2010 credit agreement, which was scheduled to mature in less than one year.
The credit agreement is a committed senior unsecured facility totaling $600 million. The new agreement increases the Company's revolving line of credit by $100 million to $500 million. The credit agreement also includes a $100 million term loan that the Company plans to fund in the fourth quarter of 2012. Subject to customary conditions, the Company may request that the lenders' aggregate commitments with respect to the revolving credit facility and/or the term loan facility be increased by up to $100 million, not to exceed total commitments of $700 million.
The Company may use proceeds from borrowings under the credit agreement for working capital, capital expenditures, letters of credit, acquisitions, repurchases by the Company of its capital stock and general corporate purposes.
The representations, warranties, covenants, including financial covenants, and events of default in the credit agreement are generally in line with those in the Company's 2010 credit agreement, except that the applicable rate of interest at each pricing level for borrowings under the credit agreement reflects a 50 basis point improvement from the Company's 2010 credit agreement.The above description of the new credit agreement is qualified by reference to the complete text of the credit agreement, which the Company intends to file with the Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K.