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 anAmendment to its current credit facility with PNC Bank ("PNC") that, amongother terms, expands the size and extends the term of the facility, providingcapital to refinance its outstanding convertible notes and reduce the cost ofits current borrowings.In total, the revised facility will provide Flotek with $75 million inborrowing capacity. The terms of the amended credit facility provide Flotekwith access to a $50 million revolving credit facility, an increase from thecurrent revolving credit facility of $35 million. In addition, PNC hasextended Flotek a $25 million term loan which, combined with current cash onhand, will be used to refinance the Company's existing convertible notesbetween now and mid-February at which time Flotek plans to redeem theremaining outstanding convertible notes. Both the revolver and term loanmature on December 26, 2017. Interest on the new facility will vary – based onthe level of borrowings – between PNC's base lending rate plus 0.50-1.50% orthe London Interbank Overnight Rate ("LIBOR") plus 1.50-2.50%, a substantialreduction from the 5.25% interest rate paid on the outstanding convertiblenotes.