Oil States eyes revolver amendment, possible drawdown for acquisition

By Wendy Van Sickle

Columbus, Ohio, Jan. 24 – Oil States International, Inc. received lender commitments to amend its revolving credit facility to provide for up to $350 million in borrowing capacity due January 2022, according to an 8-K filing with the Securities and Exchange Commission.

The company also announced it is eyeing using the amended revolver to fund a potential $85 million acquisition of a business that would complement one of its existing business lines. Oil States said it is in active negotiations regarding the acquisition, but has not reached an agreement on definitive terms.

The amended credit facility would include a minimum interest coverage ratio, a maximum net total leverage ratio and a maximum senior secured leverage ratio, each tested at the end of each fiscal quarter.

The amendment is expected to be entered into contemporaneously with the company’s closing of an offering of convertible senior notes due 2023.

Oil States is a diversified oilfield services company based in Houston.

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