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Mammoth Energy zeroes out revolver with sale of Prepa claims
Chicago, Dec. 6 – Mammoth Energy Services, Inc. had as one of the terms of a credit facility that half of any claim proceeds from the Puerto Rico Electric Power Authority would be used to reduce outstanding borrowings, according to an 8-K filing with the Securities and Exchange Commission and the Prospect News archive.
The Puerto Rico Electric Power Authority is part of Puerto Rico’s bankruptcy case and Mammoth has been owed substantial accounts receivable.
Mammoth, through seller and subsidiary Cobra Acquisitions LLC, sold to SPCP Group, LLC the first $63 million of the total outstanding accounts receivable owed by Prepa.
There was a payout between Oct. 6 and Dec. of $8.6 million, resulting in a net transferred accounts receivable amount to SPCP Group of $54.4 million.
Any excess amount beyond the $63 million will be transferred to Cobra.
However, Mammoth received $46.3 million in net proceeds after selling the claims at the purchase rate of 88 cents on the dollar.
The company used $26.9 million to repay all outstanding borrowings under its revolving credit agreement, leaving it currently undrawn. The remainder of the proceeds will be invested back into the business.
Mammoth is an Oklahoma City-based integrated oilfield service company.
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