Nuverra Environmental given additional time to refinance ABL facility

By Angela McDaniels

Tacoma, Wash., Dec. 2 – Nuverra Environmental Solutions, Inc. said the date by which it must refinance its ABL facility has been extended to Dec. 16 from Nov. 30.

The extension was made in order to accommodate the possibility of an in-court restructuring. It was subject to the satisfaction of conditions including the preparation of financing documentation designed to facilitate a pre-packaged plan of reorganization if the parties determine that an in-court restructuring alternative would be in the best interests of the company.

On Nov. 30, the company received confirmation that the conditions for the extension had been satisfied or waived, according to an 8-K filing with the Securities and Exchange Commission.

The company said it continues to engage in discussions with some of its debtholders about strategic alternatives to improve its long-term capital structure and liquidity, including in-court and out-of-court restructuring transactions.

As previously reported, the company amended the ABL facility and its term loan on Nov. 14.

The term loan amendment increased the lenders’ commitment, and the principal amount borrowed by the company, to $30.6 million from $24 million.

The term loan amendment also requires Nuverra to use the net cash proceeds of the additional commitment amount to pay the fees, costs and expenses incurred in connection with the amendment and the $2 million in interest payments accrued on its outstanding 9 7/8% senior notes due 2018.

The remaining net cash proceeds are available for general operating, working capital and other general corporate purposes.

In connection with the term loan amendment, the company paid an amendment fee of $600,000, which was added to the principal amount outstanding.

In addition, the ABL facility amendment increased the amount of permitted debt under the term loan to $30.6 million from $24 million to permit the additional commitment and reduced the additional term loan debt requirement to $6 million from $10 million.

In connection with the ABL facility amendment, the company was required to deposit $4 million of the net proceeds of the additional term loan debt in its master operating account and pay the $2 million of interest payments accrued on the 2018 notes.

Nuverra provides environmental solutions to customers in the energy market and is based in Scottsdale, Ariz.

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