Basic Energy amends pricing grid, covenants under secured revolver

By Marisa Wong

Madison, Wis., Aug. 30 - Basic Energy Services, Inc. entered into a fifth amendment to its existing secured revolving credit facility with Bank of America, NA as administrative agent on Aug. 29, according to an 8-K filing with the Securities and Exchange Commission.

The amendment adds an additional pricing level to the applicable margin. Specifically, the margin will be 350 for Libor loans if Basic's consolidated leverage ratio equals or exceeds 4 times.

Basic amended the facility's definition of consolidated EBITDA to exclude the effect of an $8 million charge that it incurred in the second quarter of 2013 in connection with the proposed settlement of a pending legal matter.

In addition, the company amended the maximum consolidated leverage ratio covenant as follows:

• For the four fiscal quarters ending Sept. 30 and Dec. 31, the maximum consolidated leverage ratio is not to exceed 4.5 to 1;

• For the four fiscal quarters ending March 31, 2014 and June 30, 2014, the maximum consolidated leverage ratio is not to exceed 4.25 to 1; and

• For the four fiscal quarters ending Sept. 30, 2014 and each fiscal quarter after that, the maximum consolidated leverage ratio is not to exceed 4 to 1.

Also, the company must maintain a maximum consolidated senior secured leverage ratio as amended:

• For the four fiscal quarters ending Sept. 30 through June 30, 2014, a maximum consolidated senior secured leverage ratio not to exceed 1.75 to 1; and

For the four fiscal quarters ending Sept. 30, 2014 and each fiscal quarter after that, a maximum consolidated senior secured leverage ratio not to exceed 2 to 1.

The company is a Midland, Texas-based well-site services company.

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