Cactus restates ABL facility for $125 million term loan, up to $225 million revolver

By Wendy Van Sickle

Columbus, Ohio, March 1 – Cactus Cos. assumed the rights and obligations of Cactus LLC as borrower under its existing credit agreement dated Aug. 21, 2028 with JPMorgan Chase Bank, NA as administrative agent and left lead arranger on Feb. 28 in connection with a merger, according to an 8-K filing with the Securities and Exchange Commission.

The asset-based lending facility was amended and restated in its entirety to provide for a $125 million term loan, which was fully drawn to fund a portion of the merger consideration, and an up to $225 million revolver, up to $20 million of which is available for the issuance of letters of credit.

Cactus may request additional revolving commitments of up to $50 million.

The term loan matures on Feb. 27, 2026. Revolving loans mature on July 26, 2027.

The amount Cactus may borrow is subject to a borrowing base that is based on a percentage of eligible accounts receivable and eligible inventory.

The term loan bears interest at adjusted term SOFR plus 350 basis points. The revolver bears interest at adjusted term SOFR plus 125 bps to 175 bps, based on average quarterly availability. The unused portion of the revolver is subject to a commitment fee of 25 bps.

The term loan is required to be repaid in regular set amounts starting March 31.

Cactus Cos. must maintain a leverage ratio no greater than 2.5x and a minimum fixed-charge coverage ratio of 1x.

Under the merger agreement, FlexSteel was bought for about $621 million.

Cactus is a Houston-based manufacturer of highly engineered wellhead and pressure control equipment. FlexSteel is a manufacturer of spoolable pipe technologies primarily purchased by customers during the production phases of a well’s lifecycle.

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