Basic Energy Services withdraws $300 million notes offering, says attractive rate is unavailable

By Paul A. Harris

Portland, Ore., March 7 – Basic Energy Services, Inc. announced in a Wednesday press release that it decided not to proceed with its $300 million offering of five-year senior secured notes (B3/B).

The company approached the market as an opportunistic means to refinance its existing debt under its amended and restated term loan for $165 million due in 2021, the release stated.

However, the company concluded that the current rate and structure available in the market lacked the flexibility to be sufficiently attractive for it to move forward.

The company is comfortable that it has sufficient financial resources and will continue to monitor the markets for terms that are more flexible to refinance its current term loan in the future, the Wednesday release stated.

Official price talk on the deal never surfaced, sources said on Wednesday.

Yield conversations were taking place in the 9% to 9½% context, traders said.

The most recent buzz in the market had the deal coming with an 8½% to 8¾% coupon at a discount to yield 9¼% to 9½%, a trader said.

Somewhere within that yield range there was demand amounting to twice the size of the offer, a source said.

The Fort Worth oilfield services provider had planned to use the proceeds, along with proceeds to its existing second amended and restated term loan agreement, to repay Basic's outstanding borrowings under its asset-based secured revolving credit facility, and for general corporate purposes.

© 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.