Patterson-UTI Obtains Unsecured Revolving Credit Facility

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.