Key Energy pays down $23 million under revolver, repays $7.7 million equipment lease

By Jennifer Chiou

New York, June 21 - Key Energy Services, Inc. said it repaid $23 million of $48 million outstanding under its revolving credit facility June 9 and intends to repay the remaining $25 million by June 30.

The Midland, Texas-based company also said on June 1 it paid $7.7 million, the balance on a lease due to an equipment lessor who opted not to provide an additional waiver of information reporting defaults.

Key Energy received a June 7 notice of default related to its 6 3/8% senior notes due 2013 and 8 3/8% senior notes due 2008 for failing to file its 10-K for 2003 by the May 31 deadline.

As of Friday, the rig-based, onshore well service company had cash and short-term investments of $102 million, including $6 million as a result of an incomplete agreement termination related to a 2004 acquisition.

After repaying the $48 million on its revolver, Key Energy will have $68 million available to borrow.

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