Key Energy amends revolver, extends financial reporting deadline to year-end

By Sara Rosenberg

New York, Sept. 2 - Key Energy Services Inc.'s amended revolving credit facility will extend its waiver of non-compliance through Dec. 31 regarding delivery of audited financial statements for 2003 and quarterly unaudited financial statements for the first three quarters of 2004, according to a company news release.

The revolver will also carry a minimum interest rate of Libor plus 225 basis points and a minimum commitment fee of 37.5 basis points under the amendment until the financial statements are delivered or the senior secured debt is rated Ba3/BB- or higher.

The amendment also provides for an event of default if charges connected with the expected restatements exceed $200 million.

The company can still draw on its $175 million revolver, including on amounts that may be needed to retire its 5% subordinated convertible notes on Sept. 25. The remaining principal amount of these notes is $18.7 million. Key Energy plans to repay them on the maturity date.

Lenders agreed in April to a waiver that extended the financial reporting deadline through Sept. 30.

Key Energy is a Midland, Texas, rig-based onshore well service company.

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