Parker Drilling and its lenders agreed to amend its 2015 secured credit agreement. The terms of the amendment provide covenant relief and flexibility to help navigate the prolonged industry downturn. The total lender commitments will be reduced to $100 million from $200 million.

The company has no borrowings outstanding under the facility and as of March 31, 2016 had $12.8 million of outstanding letters of credit.

In a news release dated January 28, 2015, Parker Drilling announced the closing of a $200 million revolver that would mature in 2010. The facility was arranged by Merrill Lynch and Wells Fargo Securities as joint lead arrangers and joint bookrunners.

Key elements of the amendment included that total lender commitments would be reduced to $100 million from $200 million and there would be allowance of up to $75 million of junior lien debt. The credit facility maturity date of January 2020 was not changed.

“This amendment contains significant covenant relief that should provide the company with improved financial flexibility during this current market downturn,” said Gary Rich, the company’s chairman, president and CEO. “Although our borrowing capacity was reduced to $100 million, we believe the company’s liquidity remains strong with a cash position on March 31, 2016 of $108 million and an undrawn credit facility.”