Flotek buys back $50.31 million of convertibles at 100.59 at year-end

By Susanna Moon

Chicago, Dec. 31 - Flotek Industries, Inc. said it will repurchase $50,312,000 of its outstanding convertible notes at 100.59% of par.

The company entered into privately negotiated transactions for an average of about 100.59% of par plus accrued interest, according to a press release.

The company said it will fund the repurchase with cash on hand and through its recently announced term loan under the $75 million credit facility with PNC bank.

The transactions are scheduled to close on Dec. 31.

"The repurchase of nearly 90% of Flotek's remaining convertible notes further reinforces the company's strong financial position and Flotek's continued robust cash generation," John Chisholm, Flotek's chairman, president and chief executive officer, said in the release.

"With this repurchase, Flotek has reduced its debt by over $70 million in 2012 and over $120 million since March, 2009. Our outlook for the coming year suggests strong cash generation will allow us to continue to improve our balance sheet as well as fund strategic initiatives that enhance shareholder value. With this repurchase, Flotek is firmly positioned as the premier unleveraged, oilfield technology company with a plethora of compelling growth opportunities."

The repurchase leaves about $5 million of convertibles for redemption in February, and the company plans to begin the process to do so in the coming weeks, the release noted.

After the redemption, Flotek said it will have about $25 million of debt outstanding.

Flotek is a Houston-based developer and distributor of oilfield technologies, including specialty chemicals and down-hole drilling and production equipment.

© 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.