Key Energy to terminate term loan commitment for bonds, still plans $350 million revolver

By Sara Rosenberg

New York, Nov. 2 - Key Energy Services, Inc. will terminate it recently announced $400 million term loan commitment in connection with its proposed issuance of $400 million in senior notes, according to a company news release.

According to sources, the company will still move ahead with the new $350 million revolver that was announced on Oct. 29.

Bank of America and Wells Fargo are the lead banks on the revolver, with Bank of America the left lead.

Proceeds from the bonds will be used to repay the company's $393 million term loan C.

The revolver will be used to refinance existing debt, to fund acquisitions, to help fund a common stock repurchase program and for general corporate purposes.

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

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