UNIT CORP: Entering into a Material Definitive Agreement (Form 8-K)
Item 1.01. Conclusion of a significant definitive agreement.
The credit agreement creates a period of four years,
The credit agreement requires Superior to maintain a trailing four-quarter consolidated EBITDA to interest expense ratio of at least 2.50:1.00, and a funded debt to consolidated EBITDA ratio of at most 3.50 for 1.00. In addition, the Credit Agreement contains a number of customary covenants which, among other things, restrict (subject to certain exceptions) Superior’s ability to incur additional indebtedness, create additional liens on its assets, make investments, to pay distributions, to enter into sale and leaseback transactions, to engage in certain transactions with affiliated companies, to engage in mergers or consolidations, to enter into hedging agreements and to acquire or dispose of assets.
Proceeds from the agreement will be used to fund capital expenditures and acquisitions, provide general working capital and issue letters of credit for Superior.
The above description of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement, which should be filed with the
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