Patterson-UTI Energy has obtained a 5-year $200 million
unsecured revolving credit facility through a bank group. The revolving
credit facility calls for periodic interest payments at a floating rate
ranging from LIBOR plus 0.625% to 1.0% or at the prime rate if elected by the
Company. The applicable rate above LIBOR is based upon the Company's debt to
capitalization ratio. The facility has restrictions customary in credit
agreements of this type as well as limitations on investments in joint
ventures and foreign subsidiaries.
Also, the Company terminated its existing
$100 million secured revolving credit facility. The Company incurred
termination fees and other expenses totaling approximately $500,000 in
connection with termination of the existing credit facility.