HOUSTON—Robert J. Barrett IV, a director at Independence Contract Drilling, Inc. (NYSE:ICD), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Barrett sold 42,627 shares of common stock on December 19, 2024. The shares were sold at an average price of $0.0101 each, bringing the total transaction value to approximately $430. The sale comes as ICD, currently valued at $9.7 million, has seen its stock decline significantly, with a -26% return over the past six months, according to InvestingPro data.
Following this transaction, Barrett holds 33,334 shares in the company. Independence Contract Drilling, headquartered in Houston, specializes in providing land-based drilling services for oil and gas producers. InvestingPro analysis shows the company maintains a "Fair" overall financial health score of 2.05, with 15+ additional investment insights available to subscribers, including detailed analysis of the company's financial position and growth prospects.
In other recent news, Independence Contract Drilling has secured a $32.5 million debtor-in-possession (DIP) financing agreement to support operations during its Chapter 11 bankruptcy proceedings, according to an SEC filing. This loan, approved by the Bankruptcy Court for the Southern District of Texas, allows the company to continue business operations under court supervision. The DIP facility, backed by holders of the company's Convertible Notes, will be used for working capital, corporate purposes, bankruptcy-related costs, and to pay down borrowings under the Revolving ABL Credit Agreement.
Independence Contract Drilling has also secured $7.5 million through the issuance of convertible secured PIK toggle notes due in 2026, in a subscription agreement with affiliates of MSD Partners, L.P., and an affiliate of Glendon Capital Management L.P. The proceeds from this issuance are designated for working capital purposes. This move reflects Independence Contract Drilling's continued effort to secure funding that offers potential conversion to equity.
These recent developments indicate the company's plans to operate normally during the restructuring process and the potential effects of the Chapter 11 proceedings on business operations and financial conditions.
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