Pioneer Energy Services Corp. announced that it has emerged from Chapter 11 bankruptcy protection, successfully completing its debt restructuring process and implementing the Chapter 11 reorganization plan confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on May 11, 2020. On the Effective Date, pursuant to the terms of the Plan, the Company entered into a senior secured asset-based revolving credit agreement in an aggregate amount of $75 million (the “ABL Credit Agreement”) among the Company and its domestic subsidiaries as borrowers (the “Borrowers”), the lenders party thereto and PNC Bank, National Association as administrative agent. Among other things, proceeds of loans under the ABL Credit Agreement may be used to pay fees and expenses associated with the ABL Credit Agreement and finance ongoing working capital and general corporate needs of the Company and certain of its subsidiaries. The maturity date of loans made under the ABL Credit Agreement is the earliest of (i) 90 days prior to maturity of the Senior Secured Notes (as defined below), (ii) 90 days prior to the maturity of the Convertible Notes (as defined below), and (iii) May 29, 2025. Revolving Loans (as defined in the ABL Credit Agreement) under the ABL Credit Agreement will bear interest at a rate of (i) in the case of LIBOR rate borrowings, the LIBOR rate, with a LIBOR rate floor of 0%, plus an applicable margin in the range of 175 to 225 basis points per annum, and (ii) in the case of base rate borrowings, the base rate plus an applicable margin in the range of 75 to 125 basis points per annum, in the case of clauses (i) and (ii), based on the Average Excess Availability (as defined in the ABL Credit Agreement). The ABL Credit Agreement has a financial covenant that requires the Borrowers (as defined in the ABL Credit Agreement) to maintain a Fixed Charge Coverage Ratio (as defined in the ABL Credit Agreement) of 1.00 to 1.00 during any Covenant Testing Period (as defined in the ABL Credit Agreement). The ABL Credit Agreement also has a financial covenant that limits the Borrowers’ annual Capital Expenditures (as defined in the ABL Credit Agreement) to 125% of the budget set forth in the Projections (as defined in the ABL Credit Agreement) for any fiscal year. The ABL Credit Agreement is guaranteed by the Borrowers and is secured by a first lien on the Borrowers accounts receivable and inventory, and the cash proceeds thereof, and a second lien on substantially all of the other assets and properties of the Borrowers. Upon the Effective Date, the Company had no borrowings and approximately $7,054,000 in outstanding letters of credit under the ABL Credit Agreement.