FTS extends early deadline in Dutch auction offer for 6¼% notes, loan

New York, June 20 – FTS International, Inc. extended the early participation deadline in its tender offers for its $468 million of outstanding 6¼% senior secured notes due 2022 and its $480 million term loan due 2021, according to a company news release.

The early deadline will now be 11:59 p.m. ET on July 1, the same as the expiration date. It was previously 5 p.m. ET on June 17.

As announced on June 6, the company is offering to buy some of its notes and loan using $50 million in cash.

The price will be determined in accordance with a modified Dutch auction procedure.

In each offer, the acceptable bid price range is $300 to $400 per $1,000 principal amount of debt. The total includes an early participation payment of $50 per $1,000 principal amount of debt, originally only payable to those who tendered by the early participation deadline but now on offer to all.

The total consideration for each $1,000 principal amount of debt tendered and accepted for purchase or repayment by the company will be equal to the sum of the base price and the clearing premium.

The clearing premium will be determined by consideration of the bid price specified by each holder or lender. The bid price represents the minimum consideration a holder or lender is willing to receive for that debt and must fall within the acceptable bid price range specified above.

The clearing premium will be the lowest single premium at which FTS will be able to spend the entire $50 million by accepting all debt tendered with bid premiums (the amount by which each bid price exceeds the base price) equal to or lower than the clearing premium.

If the aggregate amount of debt tendered at or below the clearing premium would cause the company to spend more than $50 million, then holders or lenders of the debt tendered at the clearing premium will be subject to proration.

FTS will pay accrued interest on all debt accepted in the offers up to but excluding the purchase date.

The company expects to fund the offers with cash on hand.

The lead dealer manager is Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760). Lazard Freres & Co. LLC (877 364-0850 or 212 632-1979) is acting as dealer manager. The depositary and information agent is Global Bondholder Services Corp. (212 430-3774 or 866 924-2200).

Fort Worth-based FTS provides well-completion services, including pressure pumping, wireline and reservoir optimization technologies.

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