Pioneer Energy Services closed a new $175 million senior secured term loan and a new $75 million senior secured revolving ABL facility.

According to a related 8-K filing, Wells Fargo was administrative agent for the ABL, and Goldman Sachs agented the term loan.

The proceeds from the financings were used to fully repay and retire the company’s prior $150 million revolving credit facility which had an outstanding balance of $101.7 million.

The term loan — set to mature in November 2022 or earlier, subject to certain circumstances — incurs interest at a rate of LIBOR plus 775 basis points and includes an asset coverage ratio covenant of 1.5 to 1.0.

The ABL — set to expire in November 2022, or earlier, subject to certain circumstances — incurs interest on any outstanding amounts at a rate of LIBOR plus an applicable margin of 175 basis points to 225 basis points. Based on the company’s receivables and inventory at September 30, 2017, the ABL provides immediate access to approximately $47 million of the $75 million available, which is net of $11.8 million of letters of credit required for insurance collateral.

“This term loan combined with the ABL facility will provide greater financial flexibility and increased liquidity that will allow us to grow as further improvements in the energy markets drive demand for new drilling rigs and production services equipment,” said William Stacy Locke, Pioneer’s president and CEO. “Looking forward, we plan to maintain capital discipline, and remain committed to a strong balance sheet.”

Pioneer Energy Services provides well, wireline, and coiled tubing services to producers in the U.S. Gulf Coast, offshore Gulf of Mexico, Mid-Continent and Rocky Mountain regions.