Bronco Drilling Enters $150 Million Credit Facility
Bronco Drilling Company, Inc. (Nasdaq: BRNC) has entered into a $150 million revolving credit facility to refinance all of its existing indebtedness of approximately $46 million and to provide for working capital and general corporate purposes, which may include the purchase of additional rigs.
Borrowings under the facility are guaranteed by Bronco's subsidiaries and are secured by the assets of Bronco and its subsidiaries. Draws under the facility will bear interest at varying rates from 2.0% to 3.0% over LIBOR or 1.0% to 2.0% over Prime depending on the ratio of outstanding senior debt to earnings before interest, taxes and depreciation and amortization. The facility matures in January 2009.
Fortis Capital Corp. is the facility's Administrative Agent and acted as Lead Arranger and Sole Bookrunner for the banks in the syndicate, which include Royal Bank of Scotland, The CIT Group/Business Credit, Inc., Calyon Corporate and Investment Bank, Merrill Lynch Capital, Comerica Bank, and Caterpillar Financial Services Corporation.
Bronco Drilling Company, Inc. is a publicly traded company headquartered in Oklahoma City, Oklahoma, and is a provider of contract drilling services to oil and natural gas exploration and production companies. Bronco's common
stock is quoted on The Nasdaq National Market under the symbol "BRNC".
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