On December 30, 2021, Independence Contract Drilling, Inc. executed a fifth amendment, to credit agreement, dated as of October 1, 2018 by and among the company, Sidewinder Drilling, LLC (formerly named ICD Operating LLC), the Lenders party thereto and U.S. National Bank Association, as Agent. The fifth amendment amends the term loan credit agreement to permit the company, at its option subject to required prior notice, to elect to pay accrued and unpaid interest due January 3, 2022, in kind (the PIK Amount). The payment-in-kind is in lieu of exercising a drawdown under the accordion under the term loan credit agreement, thus, the amount of the term loan accordion commitment will be reduced by the amount of the PIK Amount.

On December 31, 2021, the company elected to pay the January 3, 2022 interest payment-in-kind.