Forum Energy lowers loan commitments to $250 million, ups pricing

By Sarah Lizee

Olympia, Wash., Aug. 6 – Forum Energy Technologies Inc. amended its credit agreement on Tuesday with Wells Fargo Bank, NA as administrative agent, lowering commitments to $250 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment was made in connection with the company’s exchange offer and consent solicitation for its 6¼% senior notes due 2021.

The amendment also increased the interest rate to Libor plus 250 basis points, with a Libor floor of 0.75%.

The agreement was also modified to include an obligation to prepay outstanding loans with cash on hand in excess of some thresholds, limit the amount of inventory included in the borrowing base calculation, modify the trigger event for the company’s obligation to comply with a minimum fixed charge coverage ratio and add a cross-default to the new convertibles.

In addition, the amendment changed the maturity date to March 31, 2021, subject to extension to July 1, 2021 if, on or before March 31, 2021, the new convertibles are converted to common equity interests of the company or the maturity of the convertibles is extended to a date on or after Aug. 4, 2025 and Oct. 30, 2022 if, on or before July 1, 2021, the old notes are repaid or refinanced in their entirety with debt maturing on or after Jan. 31, 2023, or the maturity of the old notes is otherwise extended to a date on or after Jan. 31, 2023, and the new convertibles are converted to common equity interests of the company or the maturity of the new convertibles is extended to a date on or after Aug. 4, 2025.

Houston-based Forum Energy makes oilfield products and provides aftermarket technical services in the oil and natural gas industry.

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