Houston-based Independence Contract Drilling, Inc. (NYSE:ICD) has entered into a Limited Waiver Agreement, providing temporary relief from certain obligations linked to its Floating Rate Convertible Senior Secured PIK Toggle Notes due 2026. The agreement, dated September 13, 2024, involves the company, U.S. Bank Trust Company National Association as trustee and collateral agent, and the signatory Holders.
Under the agreement, the Holders have consented to waive the requirement for ICD to maintain a continuous effective registration statement for the common stock issuable upon conversion of the notes until December 31, 2024, unless an earlier termination is triggered by specific events or defaults. Additionally, the Holders have agreed to postpone ICD's obligation to repurchase $3.5 million of Convertible Notes, which was originally scheduled for September 30, 2024.
The waiver also includes a temporary modification to the composition of ICD's Board of Directors. As long as the Board has at least five members, the Holders have waived the stipulation that the Board must include seven members, as previously required under the Investor Rights Agreements with MSD Partners, L.P. and Glendon Capital Management, L.P.
This strategic move by ICD aims to provide the company with operational flexibility amid its financial obligations. The details of the Waiver Agreement have been fully incorporated by reference and filed as an exhibit to the company's recent 8-K report. The information in this article is based on statements from the said SEC filing.
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