Key Energy gets commitment for $750 million credit facility

By Sara Rosenberg

New York, Oct. 29 - Key Energy Services Inc. has received a commitment letter from two banks for a new $750 million senior secured credit facility, according to a news release.

The facility consists of a $400 million term loan and a $350 million revolver.

The lenders have committed to lend $150 million and to use best efforts to syndicate the remaining $600 million.

Proceeds will be used to refinance the company's existing $547.25 million credit facility, to fund acquisitions, to help fund a $300 million common stock repurchase program and for general corporate purposes.

The stock repurchases program is expected to commence during the fourth quarter and the authorization is effective through March 31, 2009. Repurchases are anticipated to be made from time to time on the open market or in privately negotiated transactions.

Key Energy is a Houston-based rig-based well service company.

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