Flotek Industries to buy back $15 million of convertible notes at 102

By Marisa Wong

Madison, Wis., June 25 - Flotek Industries, Inc. said it entered into privately negotiated transactions with existing noteholders to repurchase $15 million of its outstanding convertible notes.

Flotek said it will repurchase the notes at 102% of par, along with accrued interest, using cash on hand.

The transactions are expected to close on June 29.

"The repurchase of over 20% of Flotek's outstanding convertible notes further reinforces the company's strong financial position and Flotek's continued robust cash generation," said chairman, president and chief executive officer John Chisholm in a press release.

"Moreover, our outlook for the balance of 2012 provides comfort that, even with this aggressive reduction in the company's total debt, we will generate cash well in excess of our capital needs, providing plenty of dry powder to act on future strategic initiatives."

According to the release, Flotek has retired $51 million in debt in the first six months of 2012.

Flotek is a Houston-based developer and distributor of oilfield technologies, including specialty chemicals and down-hole drilling and production equipment.

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