Pacific Drilling Announces Amendment to its Credit Facilities

Pacific Drilling S.A. (NYSE: PACD) today announced that it has reached
agreement with its banking group to make certain amendments to its $500
million revolving credit facility (“RCF”) and $1.0 billion senior
secured credit facility (“SSCF”).

The amendments waive the leverage ratio covenant for the fiscal quarters
ending March 31, 2017 and June 30, 2017, and amend the maximum net debt
per vessel test level to $400 million for these quarters. Additionally,
the amendment to the SSCF waives the loan to value covenant on the next
valuation date, June 30, 2017. The amendment to the RCF also restricts
the company’s ability to grant additional liens, to refinance certain
existing indebtedness, and to change certain terms of existing debt
during the waiver period.

In consideration, the company permanently repaid $25 million under the
RCF and applied $31.7 million of cash collateral already pledged to the
SSCF lenders in August 2016 against the next principal installments due
under the SSCF in May 2017. Concurrently with the execution of the
amendments, in accordance with its obligation to maintain the loan to
rig value covenant in the SSCF at the required level as at December 31,
2016, the company made a $76 million prepayment of the SSCF.

CFO Paul Reese commented, “We are pleased to have secured these waivers
and amendments, which we believe is a strong indication of our banks’
support for the company, and should provide sufficient time to reach
agreement with all our stakeholders regarding an appropriate capital
structure for the company.”

About Pacific Drilling

With its best-in-class drillships and highly experienced team, Pacific
Drilling is committed to becoming the industry’s preferred
high-specification, floating-rig drilling contractor. Pacific Drilling’s
fleet of seven drillships represents one of the youngest and most
technologically advanced fleets in the world. For more information about
Pacific Drilling, including our current Fleet Status, please visit our
website at www.pacificdrilling.com.

Forward-Looking Statements

Certain statements and information contained in this press release
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements involve certain risks and uncertainties, many of which are
beyond our control. Important factors that could cause actual results to
differ materially from our expectations include: the global oil and gas
market and its impact on demand for our services; the offshore drilling
market, including reduced capital expenditures by our clients; changes
in worldwide oil and gas supply and demand; rig availability and supply
and demand for high-specification drillships and other drilling rigs
competing with our fleet; costs related to stacking of rigs; our ability
to enter into and negotiate favorable terms for new drilling contracts
or extensions; our substantial level of indebtedness; possible
cancellation, renegotiation termination or suspension of drilling
contracts as a result of market changes or other reasons; and the other
risk factors described in our filings with the SEC, including our Annual
Report on Form 20-F and Current Reports on Form 6-K, which are available
through the Company’s website at www.pacificdrilling.com
or through the SEC’s website at www.sec.gov.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170123006157/en/

News by QuoteMedia

www.quotemedia.com