By Susanna Moon
Chicago, Nov. 6 – Tetra Technologies, Inc. said it will issue $125 million of 11% seven-year senior notes to affiliates of GSO Capital Partners LP.
Tetra and GSO entered into a note purchase agreement for the private placement issue, according to a press release by Tetra.
Settlement is expected in the next two weeks, the company said.
Proceeds will be used to repay $90 million of senior notes due April 2016 and to repay other debt and transaction fees.
In addition, the company also amended the note purchase agreement with Wells Fargo Energy Capital, Inc. to extend the maturity date of its $50 million senior secured notes to April 1, 2019 from April 1, 2017, effective upon the closing and funding of the GSO financing.
The company also began a cash tender offer for up to $25 million principal amount of its outstanding 5.09% senior notes, series 2010-A, due Dec. 15, 2017 and 5.67% senior notes, series 2010-B, due Dec. 15, 2020.
These agreements will provide more liquidity, extend the maturity date of the Wells Fargo note and leave about $50 million of other debt due before 2019, Stuart M. Brightman, the company’s president and chief executive officer, said in the press release.
“This transaction positions Tetra to be opportunistic in a challenging market environment,” Brightman said.
Tetra is a Woodlands, Texas-based oil and gas services and production company.
| Issuer: | Tetra Technologies, Inc.
|
| Issue: | Senior notes
|
| Amount: | $125 million
|
| Maturity: | Seven years
|
| Coupon: | 11%
|
| Investor: | Affiliates of GSO Capital Partners LP
|
| Announcement date: | Nov. 6
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