Patterson-UTI, Inc. 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, National Association.  The credit agreement amends and restates the company's 2012 credit agreement.

The credit agreement is a committed senior unsecured revolving credit facility that permits aggregate borrowings of up to $600 million.  Subject to customary conditions, the company may request that the lenders' aggregate commitments be increased by up to $300 million, not to exceed total commitments of $900 million.  The maturity date under the credit agreement is March 27, 2023.  The Company has the option, subject to certain condition, to exercise two one-year extensions of the maturity date.

Loans under the credit agreement bear interest by reference, at the Company's election, to the LIBOR rate or base rate.  The applicable margin on LIBOR rate loans varies from 1.00% to 2.00% based upon the Company's credit rating.  At the Company's current investment grade rating, the applicable margin on LIBOR rate loans would be 1.5%.

Andy Smith, Patterson-UTI's Chief Financial Officer, stated, "I am delighted with the credit facility, and I would like to thank the syndicate banks for their continuing support.  This credit facility increases our liquidity and extends the term for five years at an interest rate that is favorable to the previous credit facility."