NexTier borrows $175 million under ABL as ‘precautionary measure’

By Sarah Lizee

Olympia, Wash., March 17 – NexTier Oilfield Solutions Inc. borrowed $175 million under its asset-based revolving credit agreement on Friday and Monday, according to an 8-K filing with the Securities and Exchange Commission.

The lead borrower is Keane Group Holdings, LLC.

Bank of America, NA is the administrative agent.

The ABL loan matures on Oct. 31, 2024.

Following the borrowing, a total of $83.5 million remains available, including $31.8 million in letters of credit.

The interest rates for the $150 million Libor borrowing and $25 million base rate borrowing are expected to be 2.125% and 3.75%, respectively.

The company said it increased its borrowings as a precautionary measure in order to increase its cash position and preserve financial flexibility considering current uncertainty in the global markets resulting from the Covid-19 outbreak and recent OPEC actions.

Proceeds may be used for working capital, general corporate or other purposes permitted by the ABL agreement.

NexTier, formerly Keane Group, Inc., is a Houston-based provider of integrated well completion services.

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