Oil States enters into $350 million amended revolver due 2022

By Wendy Van Sickle

Columbus, Ohio, Jan. 30 – Oil States International, Inc. amended its revolving credit facility to provide for up to $350 million in borrowing capacity due Jan. 30, 2022, according to a press release.

There is an accordion feature providing for up to $150 million of additional capacity.

Borrowings will bear interest at Libor plus a margin ranging from 175 basis points to 300 bps, based on a ratio of the company’s total net funded debt to consolidated EBITDA.

There is also a quarterly fee on unused commitments of either 25 bps or 50 bps, depending on total net funded debt to consolidated EBITDA.

Oil States must maintain a minimum interest coverage ratio of at least 3 times, a maximum senior leverage ratio of 2.25 times and a total net leverage ratio of no more than 4 times through the quarter ending Dec. 31, 2018 and no more than 3.75 times thereafter.

The company announced in an 8-K filing with the Securities and Exchange Commission last week that 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 was in active negotiations regarding the acquisition, but had not reached an agreement on definitive terms.

The amendment was entered into contemporaneously with the company’s closing of an offering of $200 million 1.5% convertible senior notes due 2023.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.