Superior Energy Services entered an amended credit agreement with JPMorgan Chase as administrative agent for a $300 million asset-based secured revolving credit facility.

JPMorgan Chase, Wells Fargo, Bank of America and Citigroup Global Markets served as joint lead arrangers and joint bookrunners. Wells Fargo, Bank of America and Citibank served as syndication agents.

The borrowing base under the facility will be determined by reference to SESI’s and the subsidiary guarantors’ billed and unbilled eligible accounts receivable, eligible inventory and eligible premium rental drill pipe less reserves established by the administrative agent.

At the closing of the agreement, availability was approximately $285.6 million. Subject to certain conditions, at the company’s request and with the consent of the participating lenders, the total commitments under the facility may be increased to $500 million.

The new revolving credit facility replaced SESI’s existing $300 million revolving credit facility, which was scheduled to mature in February 2019.

Borrowings under the facility will bear interest, at SESI’s option, at either an adjusted LIBOR rate plus an applicable margin per annum, or an alternate base rate plus an applicable margin per annum. The applicable margin for LIBOR rate loans will initially be 2.50% and will be adjusted on a sliding scale from 1.75% to 2.50% based on the company’s consolidated total leverage ratio. SESI is required to pay commitment fees based on the daily unused amount of the facility in an amount per annum equal to an applicable percentage, which ranges from 0.25% to 0.50% and is determined based on the company’s total leverage ratio.