Key Energy closes on new $150 million revolving credit facility

By Sara Rosenberg

New York, July 15 - Key Energy Services Inc. said it closed on a new $150 million three-year senior secured revolving credit facility. PNC Capital Markets and Wells Fargo acted as co-lead arrangers, PNC Bank is the administrative agent and Credit Lyonnais, Lehman Commercial Paper and Royal Bank of Canada are co-documentation agents, a company spokesman told Prospect News.

There is a pricing grid based on total senior debt to EBIDTA that determines the interest rate on the revolver. Initially, the loan bears interest at Libor plus 225 basis points, the company spokesman said.

Over $250 million in commitments were received for the new loan that is replacing the company's existing $100 million revolver, the company said in a press release.

At closing, no borrowings were drawn under the revolver. With the new revolver, the company will have total liquidity of about $195 million before the acquisition of Q Services Inc.

Key Energy is a Midland, Tex. oil well service company.

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