RPC INC 8-K

What Happened
RPC, Inc. announced on July 7, 2026 (8-K) that it entered into an Amended and Restated Credit Agreement dated June 30, 2026 with Bank of America and other lenders. The facility remains a revolving credit line up to $100 million (including a $35 million letter-of-credit sub-facility and a $35 million swingline) and extends the termination date for revolving loans from June 22, 2027 to June 30, 2031. The amendment also removed the prior “SOFR Adjustment” from pricing.

Key Details

• Total facility: up to $100.0 million; includes $35.0M letter-of-credit sub-facility and $35.0M swingline.
• Covenants: if trailing four-quarter Adjusted EBITDA ≥ $50M, consolidated leverage ratio ≤ 2.50:1.00 and debt service coverage ratio ≥ 2.00:1.00; otherwise tangible net worth must be ≥ $400M.
• Pricing: borrower choice of Term SOFR + margin (1.25%–2.25%; SOFR Adjustment removed) or Base Rate + margin (0.25%–1.25%); unused commitment fee 0.20%–0.30% per year.
• Guarantee: full and unconditional guarantee by RPC’s 100%‑owned domestic subsidiaries that hold substantially all consolidated assets; certain minor subsidiaries are not guarantors.

Why It Matters
This amendment secures near‑term liquidity by pushing the revolver maturity out four years to 2031, reducing near-term refinancing risk. The covenant structure ties borrowing capacity and pricing to the company’s Adjusted EBITDA and leverage levels, which can affect RPC’s ability to pay dividends, incur additional debt, or pursue certain transactions if thresholds aren’t met. Removal of the SOFR Adjustment simplifies pricing mechanics; investors should monitor RPC’s trailing Adjusted EBITDA, leverage ratios, and any use of the revolving facility as indicators of financial flexibility.