FORT WORTH, Texas, Oct. 2, 2017 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic" or the "Company") announced
today that it has entered into a new asset-based lending credit
facility ("New ABL") that is secured by its accounts receivable.
The New ABL has a four-year term and replaces its prior
$75 million asset-based lending
credit facility ("Prior ABL"). The New ABL agreement was filed with
the SEC in an 8-K earlier today.
Under the New ABL, the borrowing base will be measured each
month and, based on the accounts receivable at August 31, Basic would have available borrowings
of approximately $42 million, net of
letters of credit mainly required for insurance collateral. This
availability would not be subject to restrictions on borrowing or
covenants other than measurements of accounts receivable as of an
applicable borrowing date and customary events of default.
The Prior ABL was subject to other covenant constraints, including
a fixed charge coverage ratio, that limited the ability for
borrowings.
Roe Patterson, Basic's CEO and President, stated, "We were very
pleased to improve the liquidity of the company with the successful
completion of the New ABL to ensure that Basic has the ability to
meet working capital needs when required. Based on this improved
liquidity from the New ABL, we have decided that the $50 million at-the-market ("ATM") public offering
announced on August 3, 2017 is no
longer needed, and the ATM program has been terminated."
Basic Energy Services provides well site services essential to
maintaining production from the oil and gas wells within its
operating area. The Company employs over 4,000 employees in
more than 100 service points throughout the major oil and gas
producing regions in Texas,
Louisiana, Oklahoma, New
Mexico, Arkansas,
Kansas, California and the Rocky Mountain and
Appalachian regions. Additional information on Basic Energy
Services is available on the Company's website at
www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release may include
forward-looking statements and projections made in reliance on the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Basic has made every reasonable effort to ensure that
the information and assumptions on which these statements and
projections are based are current, reasonable, and complete.
However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this release and the presentation,
including our ability to successfully execute, manage and integrate
acquisitions, reductions in our customers' capital budgets, our own
capital budget, limitations on the availability of capital or
higher costs of capital, and lower commodity prices. While Basic
makes these statements and projections in good faith, neither Basic
nor its management can guarantee that the transactions will be
consummated or that anticipated future results will be achieved.
Basic assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking
statements made by Basic, whether as a result of new information,
future events, or otherwise.
Contacts:
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Trey Stolz, VP
Investor Relations
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Basic Energy
Services, Inc.
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817-334-4100
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Jack Lascar / Kaitlin
Ross
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Dennard-Lascar
Associates
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713-529-6600
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SOURCE Basic Energy Services, Inc.