PNC Bank chipped in $25 million to increase Grey Wolf's credit facility to $100 million. "PNC approached lead bank CIT Group/Business Credit and showed an interest in participating in the facility," said Don Guedry, v.p. and treasurer of the contract oil and gas land drilling provider. CIT has led Grey Wolf's credit lines since January 1999 and has a $45 million exposure. The lead banker on the credit for PNC is Kirk Wolverton. Wells Fargo Foothill, meanwhile, has a $35 million commitment.
Grey Wolf was not in immediate need of cash, but the move brought additional liquidity for future growth purposes, Guedry added. The maturities were also extended by three years to December 2008 as the facility was set to be renewed in January 2006. Guedry said the company wanted to keep it long-term rather than have current liabilities. Other terms on the facility remained unchanged. Pricing is based on the company's debt service coverage ratio ranging from LIBOR plus 1 3/4%-3 1/2%. Grey Wolf has no borrowings outstanding under the revolver which is secured by all of the company's assets, including drilling equipment.