The terms of the credit facility include periodic interest payments at a floating rate based upon the Company''s debt service coverage ratio within a range of either the London Interbank Offering Rate (LIBOR) plus 1.75% to 3.50% or prime plus .25% to 1.50%. In addition, the credit facility contains certain affirmative and negative covenants including a minimum appraisal value of the Company''s drilling rigs and related equipment plus certain financial covenants which take effect if the Company''s cash on hand and borrowing capacity under the credit facility falls below $35 million. Substantially all of the Company''s assets, including its drilling rigs and related drilling equipment, are pledged as collateral under the credit facility. The Company, however, retains the option, subject to a minimum appraisal value and other conditions, under the credit facility to extract $75 million of the equipment out of the collateral pool for other purposes.
Grey Wolf, Inc., headquartered in Houston, Texas, is a leading provider of contract oil and gas land drilling services in the best natural gas producing regions in the United States with a total drilling rig fleet of 127. The Company is also a leader in onshore turnkey drilling services.
Grey Wolf, Inc.