Flotek Revises Credit Facility to Provide $75M in Borrowing Capacity
Flotek Industries, Inc. (NYSE: FTK) ("Flotek" or the "Company") today announced that it has entered into an Amendment to its current credit facility with PNC Bank ("PNC") that, among other terms, expands the size and extends the term of the facility, providing capital to refinance its outstanding convertible notes and reduce the cost of its current borrowings.
In total, the revised facility will provide Flotek with $75 million in borrowing capacity. The terms of the amended credit facility provide Flotek with access to a $50 million revolving credit facility, an increase from the current revolving credit facility of $35 million. In addition, PNC has extended Flotek a $25 million term loan which, combined with current cash on hand, will be used to refinance the Company's existing convertible notes between now and mid-February at which time Flotek plans to redeem the remaining outstanding convertible notes. Both the revolver and term loan mature on December 26, 2017. Interest on the new facility will vary – based on the level of borrowings – between PNC's base lending rate plus 0.50-1.50% or the London Interbank Overnight Rate ("LIBOR") plus 1.50-2.50%, a substantial reduction from the 5.25% interest rate paid on the outstanding convertible notes.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.