Flotek Industries, Inc. 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.
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