Mammoth Energy refinances with new revolver, term loan facility

By Mary-Katherine Stinson

Lexington, Ky., Oct. 19 – Mammoth Energy Services, Inc. on Monday refinanced its debt with a new up to $75 million revolving credit facility and a new $45 million term credit facility, according to a 8-K filing with the Securities and Exchange Commission.

This refinances in full and terminates the company’s outstanding debt under its amended and restated revolving credit facility dated Oct. 19, 2018.

The new revolver is scheduled to mature on the earlier of July 17, 2028, unless the debt under the new term credit facility is refinanced, and Oct. 16, 2028.

Interest under the new revolving facility equals the tranche rate plus 175 basis points if the average excess availability percentage is greater than 66 2/3%, 200 bps if it is greater than 33 1/3% and less than or equal to 66 2/3% and 225 bps if it is less than or equal to 33 1/3%.

As of Oct. 16, the financial covenant under the new revolver was the fixed charge coverage ratio of 1 to 1, which applies only during a financial covenant period.

Fifth Third Bank, NA is the sole lead arranger, sole bookrunner, agent, letter-of-credit issuer and swing line lender under the revolving facility.

Interest under the new term credit facility equals the SOFR plus 750 bps. This margin may be increased as Mammoth may elect in-kind payments of the accrued interest due on any interest period up to April 16, 2025 by adding the interest to the principal amount of the outstanding loans.

Under the new term credit facility, Mammoth is required to mandatorily remit to Wexford Capital LP up to 50% of all amounts that constitute PREPA claim proceeds, which will be used to reduce outstanding borrowings under the new term facility.

The new term credit facility is scheduled to mature on Oct. 16, 2028.

The term facility is led by Wexford, an affiliate owning approximately 47% of Mammoth’s outstanding common stock.

On Monday, there were outstanding borrowings under the new revolver of $28.1 million and the borrowing base was $35.1 million, leaving approximately $7 million available for future borrowings after maintaining the required reserves.

Outstanding borrowings under the new term credit facility are $45 million.

Mammoth is an Oklahoma City-based integrated oilfield service company.

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