HOUSTON - Drilling Tools International Corp. (NASDAQ:DTI), a provider of oilfield services and drilling tools, has enhanced its financial position through a recent amendment to its existing credit facility and the addition of a new term loan, the company stated today.
The amendment to the company's Senior Secured Asset-Based Revolving Credit Facility with PNC Business Credit has increased DTI's borrowing capacity from $60 million to $80 million. This adjustment comes with an improved pricing structure set at SOFR + 2.50% and an extended maturity date to March 2029. Certain restrictive financial covenants have also been removed as part of the amendment.
In a parallel move, DTI has secured a new $25 million term loan with PNC, earmarked to support the company's growth initiatives. Like the amended facility, this loan is slated for maturity in March 2029 and is secured by a portion of DTI's rental fleet assets and machinery. The term loan's pricing is set at SOFR + 4.00%.
David Johnson, DTI's Chief Financial Officer, expressed confidence in the company's ongoing partnership with PNC, which he believes reflects the bank's trust in DTI's management and business prospects. Johnson highlighted the refinancing as a pivotal step for DTI, providing the company with favorable terms to further its international expansion and merger and acquisition strategies while continuing to offer top-tier products and services to its clients.
The transactions with PNC Bank, which acted as the sole lender with PNC Business Credit serving as the Administrative Agent, were advised legally by Winston & Strawn for DTI and Holland & Knight for PNC Business Credit.
DTI, headquartered in Houston, Texas, has a history dating back to 1984. The company specializes in manufacturing and renting downhole drilling tools for horizontal and directional drilling in the oil and natural gas sectors. DTI operates from 16 locations in North America and maintains international stocking points across Europe and the Middle East.
This news article is based on a press release statement from Drilling Tools International Corp.
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