Independence Contract Drilling announced that it has amended its existing senior secured revolving credit facility and modified certain covenants to improve the company’s financial flexibility.

According to a related 8-K filing, this third amendment was provided by a lender group led by CIT as administrative agent. It decreases the aggregate amount of commitments under the agreement from $155 million to $125 million.

The amended credit facility also modifies the leverage ratio covenant so that it increases from 3.75 in the first quarter of 2016 to 4.50 during the fourth quarter of 2016. The leverage ratio returns to 3.00 at the end of the second quarter of 2017. The amendments to the credit facility also reduce the minimum rig utilization covenant to 60% in 2016 and 70% in 2017, and provide for the exclusion of certain planned capital expenditures from consideration for purposes of calculating the fixed charge coverage ratio under that covenant.

As of September 30, 2015, the company had net debt of approximately $55.1 million. The credit facility maintains its maturity date of November 4, 2018.

Houston, TX-based Independence Contract Drilling provides land-based contract drilling services for oil and natural gas producers in the U.S.