Quintana to repay facility debt with proceeds from common stock sale

By Sarah Lizee

Olympia, Wash., Feb. 9 – Quintana Energy Services Inc. plans to repay all outstanding borrowings under its revolving credit facility and $11.2 million of outstanding borrowings under its term loan using proceeds from a sale of common stock, according to a FWP filing with the Securities and Exchange Commission.

The company will also pay a prepayment fee of 3%, or about $1.3 million, under the term loan.

Quintana said it expects to receive about $82.7 million of net proceeds, or $95.8 million if the underwriters’ option to purchase additional shares is exercised in full, from the common stock sale.

Net proceeds received from the exercise of the underwriters’ option to purchase additional shares will be used to repay borrowings under the company’s new credit facility and for general corporate purposes.

Following the offering, the company said it estimates that there will be roughly $11.1 million of borrowings outstanding under the new credit facility and around $62.7 million of available borrowing capacity.

Quintana is an onshore drilling services company based in Houston.

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