Pioneer Energy Services (NYSE: PES) today announced that it has amended its existing senior secured revolving credit facility and modified certain covenants.

"We are pleased to have closed on this amendment that provides Pioneer with adequate liquidity and financial flexibility to navigate the current market conditions," said Wm. Stacy Locke, Pioneer's President and Chief Executive Officer.

"While we do expect the activity in the second half of the year to be improved over the first half, we felt it was prudent to proactively work with our bank group to obtain more flexible covenant provisions."

Under this new amendment:

• For the fiscal quarters ending December 31, 2016 through June 30, 2017, the senior consolidated leverage ratios and interest coverage ratios will be suspended and replaced with a minimum EBITDA requirement. For the fiscal quarter ending on: (i) December 31, 2016, EBITDA at the end of the prior six month period must not be less than $4 million, (ii) March 31, 2017, EBITDA at the end of the prior nine month period must not be less than $7 million, and (iii) June 30, 2017, EBITDA at the end of the prior twelve month period must not be less than $12 million.
• The permissible senior consolidated leverage ratios for the following fiscal quarters were revised as follows: (i) as of September 30, 2016, to be no greater than 4.50 to 1.00, (ii) as of September 30, 2017, to be no greater than 5.00 to 1.00, and (iii) as of December 31, 2017, to be no greater than 4.00 to 1.00.
• The permissible interest coverage ratios for the following fiscal quarters were revised as follows: (i) as ofSeptember 30, 2016, to be no less than 1.15 to 1.00, (ii) as of September 30, 2017, to be no less than 1.00 to 1.00, and (iii) as of December 31, 2017, to be no less than 1.25 to 1.00.
• The aggregate amount of commitments is set at $175 million, representing a reduction of $25 million, with a further reduction of $25 million no later than December 31, 2017. The availability of credit will be based on a borrowing base comprised of certain eligible cash, accounts receivables, inventory and equipment. At this time, the values of the Company's eligible assets are sufficient to meet the full $175 million revolver capacity.
• Pricing increased to a fixed rate of LIBOR plus 550 basis points for the duration of the facility.

"We remain committed to reducing debt to maintain a strong and flexible balance sheet and are also continuing to high-grade our drilling fleet by monetizing non-strategic assets when possible. We currently have $95 millionoutstanding and $17.3 million in committed letters of credit under the revolving credit facility," Locke said.

Details of the amended credit agreement are available in a Current Report on Form 8-K filed with the Securities and Exchange Commission today.

About Pioneer

Pioneer Energy Services provides contract land drilling services to oil and gas operators in Texas, the Mid-Continent and Appalachian regions and internationally in Colombia through its Drilling Services Segment. Pioneer also provides well, wireline, and coiled tubing services to producers in the U.S. Gulf Coast, offshoreGulf of Mexico, Mid-Continent and Rocky Mountain regions through its Production Services Segment.