Keane to repay balance of term loan, some 12% notes with IPO proceeds

By Marisa Wong

Morgantown, W.Va., Jan. 20 – Keane Group, Inc. intends to repay the entire balance under its term loan facility and a portion its 12% notes due Aug. 8, 2019 using proceeds from its initial public offering of common stock, according to a 424B1 filing with the Securities and Exchange Commission.

The company plans to repay the existing balance of about $99 million under its term loan, along with a roughly $16 million prepayment premium, and about $50 million of its 12% notes issued in 2014.

The company will use any remaining proceeds for general corporate purposes, which may include debt repayment, capital expenditures, working capital and potential acquisitions and strategic transactions.

The principal amount outstanding under the term loan currently bears interest at Libor plus 700 basis points, subject to a 1.5% Libor floor. The term loan is set to mature on March 16, 2021, subject to a springing maturity 91 days inside the company’s secured notes due Aug. 8, 2019.

Keane is a Houston-based provider of integrated well completion services.

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