National Energy Services gets $50 million loan via Hana Investments

By Marisa Wong

Morgantown, W.Va., June 12 – National Energy Services Reunited Corp. entered into a $50 million loan agreement on June 5 with Hana Investments Co. WLL, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The unsecured loan matures on Dec. 17, 2018 and can be prepaid at any time in National Energy ordinary shares at a conversion rate of $11.244 per share or cash, at the lender’s choice.

The loan will accrue interest at the greater of (i) an amount equal to $4 million payable on maturity or prorated if the loan is prepaid and (ii) at a rate per annum equal to one-month ICE Libor plus a margin of 225 basis points payable on maturity or the date the loan is prepaid. The interest is also payable in ordinary shares at the conversion rate of $11.244 per share or cash at the lender’s option.

In addition, Hana has the right to convert the principal of the loan into National Energy ordinary shares on or prior to maturity at a conversion rate of $11.244 per share.

The loan is subject to an origination fee of $600,000 payable in ordinary shares at $11.244 per share or 53,362 shares at the closing of National Energy’s acquisition of Gulf Energy SAOC and National Petroleum Services, which was completed on June 6.

Formerly National Automation Services, Inc., National Energy Services is a holding company based in Houston. Its subsidiaries provide services for the domestic oil and gas industry.

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